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VAT Changes in Romania and Estonia in 2025
As of mid-2025, both Romania and Estonia have introduced significant changes to their VAT systems. These updates are particularly relevant for businesses using the EU's One Stop Shop (OSS) scheme for cross-border B2C sales. Below is a summary of the key changes and their implications.
Romania: VAT Reform Effective 1 August 2025
Romania has enacted a comprehensive VAT reform under Law No. 141/2025, aimed at aligning with EU standards and improving fiscal efficiency.
Key Changes:
- The standard VAT rate increases from 19% to 21%.
- The 5% and 9% reduced rates are replaced by a single reduced rate of 11%.
The 11% rate applies to:
- Medicines for human use
- Basic food and non-alcoholic beverages (with some exceptions)
- Books, newspapers, and magazines (both print and digital)
- Water supply, sewage, and agricultural irrigation
- Hotel, restaurant, and catering services (excluding alcohol and sugary drinks)
- Cultural services (e.g., museums, zoos)
Implications for OSS Users:
- Update VAT rate mappings for Romanian transactions in your OSS portal.
- Ensure ERP and invoicing systems reflect the new 21% and 11% rates from 1 August 2025.
- Review and adjust contracts and pricing models accordingly.
Estonia: VAT Reform effective from 1 July 2025
Estonia has raised its VAT rates as part of a broader fiscal reform to support national priorities.
Key Changes:
- The standard VAT rate increases from 22% to 24%.
- Reduced VAT rates also increase:
- Accommodation: from 9% to 13%
- Press publications: from 5% to 9%
Implications for OSS Users:
- Apply the new 24% VAT rate to all B2C sales to Estonian consumers from 1 July 2025.
- Update tax codes in ERP and e-commerce platforms.
- Adjust pricing, invoicing, and credit note handling.
Final Notes
These VAT changes require timely updates to your systems and processes to remain compliant. Businesses using the OSS scheme should act now to:
- Review affected product and service categories
- Update VAT configurations in all relevant systems
- Communicate changes to customers and partners where necessary
For further assistance or clarification, please contact our VAT compliance team.
Stay informed. Stay compliant.
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