The government has recently enacted legislation that exempts specific products, such as powdered milk designed for newborns, infants, and young children, from the standard VAT rate applicable to foods with a high sugar content. At the same time, the authorities slightly adjusted the definition of added sugar. There are some cases that allow for applying the reduced 9% VAT rate instead of the regular 19% VAT rate.
Definition and rate of VAT for foods with added sugar: changes and exceptions in Romania
Public
Romania
Author: Kristina Dosen
Category:
Fiscal subject related
Views:
903
Content accuracy validation date:
12.01.2024
Content accuracy validation time:
08:06h
As per the provisions outlined in GEO 115/2023 (Article LXVIII, points 8 and 9), powdered milk designed for newborns, infants, and young children falls under the VAT rate of 9%. The exception is in effect through 2024 based on this change. Also, in cases where foods with added sugar have a certain amount of sugar content, the same 9% rate is applied, as explained below.
In addition to powdered milk, the list of exceptions currently includes cakes and biscuits, for which VAT is also lowered to 9%.
It is noted how to determine the VAT rate on foods with added sugar:
- If the food contains added sugar and the total sugar content is at least 10 g/100 g, a VAT of 19% is applied (except for powdered milk, cake, and biscuits, which will have a 9% rate no matter the amount of sugar in them);
- If the food does not contain added sugar or contains added sugar but the total sugar content is below 10 g/100 g, a VAT of 9% applies.
At the same time, the provision detailing what added sugar means has also been adjusted to explain what added sugar is since it can vary in type. In that regard, 'added sugar means cane sugar, brown sugar, crystalline sucrose, inverted sugar, dextrose, molasses, honey sugars, molasses, and syrups such as malt syrup, fruit syrup, rice malt syrup, maize syrup, high fructose maize syrup, maple syrup, glucose syrup, glucose-fructose, fructose, sucrose, glucose, lactose, hydrolyzed lactose, galactose, sugars in nectars such as coconut flower nectar, date nectar, agave nectar, sweetness sugars, added as ingredients.'
Compared to the original form of the definition, the references to sugars in unsweetened fruit juices, fruit juice concentrate, and sugars in fruit purees have disappeared from the definition of added sugar. The change is also effective and will be applied to such products in 2024.
Other news from Romania
Additional clarifications from Romanian authorities on handling simplified invoices with additional data needed from 2025.
Romania
Author: Tara Nedeljković
Starting January 2025, simplified invoices in Romania for both B2B and B2C transactions must include additional details, such as the VAT or tax identification code of the beneficiary, and be submitted to the e-Invoice system unless classified as tax receipts. Read more
Key amendments and e-invoicing updates in Romania approaching 2025.
Romania
Author: Tara Nedeljković
Romania's Ministry of Finance has proposed updates to e-invoicing regulations, set to take effect in January 2025, including eliminating the obligation to use RO e-Invoice for certain non-taxable transactions outside Romania. The draft law introduces mandatory e-invoicing for simplified invoices while exempting tax receipts issued via fiscal devices and intra-community deliveries exempt from VAT. Read more
Clarifying Romania's e-invoicing requirements and how they impact B2C transactions in 2025
Romania
Author: Tara Nedeljković
Romania's e-invoicing requirements for business-to-consumer (B2C) transactions, effective January 1, 2025, mandate the submission of invoices in the RO e-Invoice system only for specific cases defined by law. Read more
The QR code requirement on fiscal receipts status and deadline announcement by the Romanian government
Romania
Author: Tara Nedeljković
The Romanian government, through Government Emergency Ordinance No. 69/2024, mandates the inclusion of QR codes on fiscal receipts containing key details such as issuance time and fiscal series, aimed at enhancing tax compliance. Due to technical challenges and ongoing discussions with stakeholders, businesses have until September 1, 2025, to comply without penalties. Read more
New document was uploaded: Recorded webinar: E-invoicing for Global Retailers
Public
All countries
Author: Kristina Dosen
If you are struggling with complex e-invoicing implementations across multiple countries, and if you are concerned about mounting costs, potential delays, or compliance risks, our webinar will help you to learn how global retailers can streamline e-invoicing efficiently! With countries worldwide mandating e-invoicing, international retailers face unique challenges adapting to new regulations acros... Read more
Updates for vending machine cash register compliance in Romania—specific postponement published
Romania
Author: Tara Nedeljković
Romania has extended the deadline for penalties related to equipping vending machines with electronic fiscal cash registers until December 31, 2024, but only for operators who have signed contracts for purchasing and installing these devices by that date. Read more
A proposal for VAT in the digital age (ViDA) has been approved.
Public
Author: Nikolina Basić
The EU's Economic and Financial Affairs Council (ECOFIN) has approved the Value Added Tax in the Digital Age (ViDA) proposal, aiming to modernize VAT rules and combat tax fraud. ViDA introduces key measures like Digital Reporting Requirements (DRR), VAT collection for the platform economy, and expanded Single VAT Registration, with implementation planned from 2027 to 2035. Businesses must prepare... Read more