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Romania: Latest Changes to Vat Exemptions

Romania: Latest Changes to Vat Exemptions

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Law 88/2023, which was published in Official Gazette no. 310 from 12/04/2023, contains important amendments to the Romanian Fiscal Code.

From 11 June 2023, the following supplies will be VAT-exempt:

  • construction, rehabilitation and modernisation services for hospital units within the public network, as well as construction, rehabilitation and modernisation services for hospital units which are supplied to non-profit entities registered in the Public Register organised by the tax authorities if the services are intended for hospital units owned and operated by the non-profit entity or those from the public network, as the case may be;
  • medical equipment, devices, articles, accessories and protective equipment, materials and consumables for sanitary use, normally intended for use in the field of healthcare or for use by disabled persons, essential goods for compensating for and overcoming disabilities, other than those mentioned below, as well as the adaptation, repair, rental and leasing of such goods, carried out for hospital units in the public network, as well as those carried out for non-profit entities registered in the Public Register organised by the tax authorities if they are intended for hospital units owned and operated by the non-profit entity or those from the public network, as the case may be;
  • prostheses and accessories, with the exception of dental prostheses legally exempt from VAT;
  • orthopaedic products.

The VAT exemption for the supply of the goods/services mentioned above applies:

1. directly, by the suppliers of goods/services issuing invoices without VAT if the beneficiary of the goods/services is a hospital unit within the public network or, if applicable, the central or local public institution/authority which ensures its financing, according to the law;
2. by way of VAT refunds on the purchase of goods/services by non-profit entities according to a procedure established by order of the Minister of Public Finance. The VAT refunded from the state budget must be used by non-profit entities exclusively to finance the acquisition of the aforementioned goods/services.

The order of the Minister of Finance and the methodology for applying the VAT exemption will be issued within 60 days of publication of this law in the Official Gazette.

By Carmen Mazilu, Tax Advisor, Noerr

Romanian Knowledge Partner

Țuca Zbârcea & Asociații is a full-service independent law firm, employing cross-disciplinary teams of lawyers, insolvency practitioners, tax consultants, IP counsellors, economists and staff members. It also operates a secondary law office in Cluj-Napoca (Romania), and has a ‘best-friend’ agreement with a leading law firm in the Republic of Moldova. In addition, thanks to the firm’s dedicated Foreign Desks, the team provides the full range of services to international investors seeking to gain a foothold or expand their existing operations in Romania. Since 2019, the firm and its tax arm are collaborating with Andersen Global in Romania.

Țuca Zbârcea & Asociaţii is providing legal services in every aspect of business, covering all major areas of practice: corporate and M&A; litigation and international arbitration; corporate tax; public procurement; TMT; employment; insurance; banking and finance; capital markets; competition; healthcare and pharmaceutical; energy and natural resources; environmental; intellectual property; real estate; regulatory legal services.

Țuca Zbârcea & Asociaţii is a First-Tier law firm in all international legal directories and a multiple award-winning law firm both locally and internationally. It received the CEE Deal of the Year Award (DOTY Awards 2021) and the Law Firm of the Year Award: Romania (IFLR Europe Awards 2021). 

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