A VAT rate of 6% will be used in the hospitality industry as from October 1 this year, down from 12% at present. The new rate will be applied to accommodation services and food products or drinks, except for alcoholic beverages. The bill that introduces the reduced VAT rate for the period of the state of emergency or public health emergency was adopted by 84 votes in favor after being given two readings, IPN reports.

PAS MP Dumitru Alaiba said the acceleration of the introduction of tax concessions for the hospitality industry is important as the companies sustain considerable losses owing to the restrictions imposed in connection with the COVID-19 pandemic.

BCS MP Vasile Bolea said the lowering of the VAT rate is not so significant when the units of the hospitality industry face restrictions due to the pandemic. The relevant decisions taken by the National Extraordinary Public Health Commission should be reviewed if the intention is to really support the given sector.

Șor Party MP Vadim Fotescu noted that namely their group proposed reducing the VAT for the hospitality industry in the previous legislature. They are in favor of the earlier coming into force of this law.

The law to reduce the VAT for particular economic activities that was adopted by the previous legislature was to be take effect on November 21, 2021. Under PAS MP Dumitru Alaiba’s legislative proposal, the lower VAT rate will be applied as from October 1 already.