Government Decision No. 602/2025 amending and supplementing Title VII "Value Added Tax" of the Methodological Norms for the Application of Law No. 227/2015 on the Fiscal Code, approved by Government Decision No. 1/2016, in force from August 1st, 2025, was published in the Official Gazette, Part I No. 715 of July 31st, 2025. 

Following the amendments to the Fiscal Code, by Law 141/2025, related to the new VAT rates, the rules for the application of the Fiscal Code were immediately amended, in order to detail the procedure for applying the reduced VAT rate, especially for food.

Main amendments/supplements to the Fiscal Code Implementation Rules

1. Food intended for human consumption and food intended for animal consumption are defined, for the purposes of the reduced VAT rate

According to the Fiscal Code, the delivery of food, including beverages, intended for human and animal consumption, live animals and birds of domestic species, whose CN codes are established by methodological rules, with some exceptions, benefits from the reduced VAT rate (11%).

Food intended for human consumption is defined in Article 2 of Regulation (EC) No 178/2002 of the European Parliament and of the Council of January 28th, 2002, laying down the general principles and requirements of food law, establishing the European Food Safety Authority and laying down procedures in matters of food safety.

Food intended for animal consumption is animal feed as defined in Article 3, point (4) of the same Regulation.

2. The application procedure is regulated and the CN codes are mentioned for goods that benefit from the reduced VAT rate (11%)

The reduced tax rate of 11% is applied throughout the economic chain from production to sale to the final consumer by all suppliers, regardless of their quality, namely producers or traders, for the delivery of goods that fall under the following CN codes, regardless of their destination, with the exception of foods with added sugar whose total sugar content is at least 10 g/100 g of product, other than powdered milk for newborns, infants and young children:

1. live animals and live birds of domestic species falling within CN codes 0101-0105, 0106 14 10, 0106 19 00, 0106 33 00, 0106 39 10, 0106 39 80, 0106 41 00 and 0106 90 00 intended for human or animal consumption or for the production of food for human or animal consumption, raw materials or ingredients for the preparation of food for human or animal consumption, including where they are used for reproduction;
2. meat and edible organs falling within CN codes 0201-0210;
3. fish and crustaceans, molluscs and other aquatic invertebrates falling within CN codes 0301-0308, with the exception of live ornamental fish falling within CN codes 0301 11 00 and 0301 19 00;
4. milk and milk products falling within CN codes 0401-0406;
5. birds' eggs falling within CN codes 0407-0408, with the exception of those falling within CN codes 0407 11 00, 0407 19, 0408 11 20, 0408 19 20, 0408 91 20 and 0408 99 20;
6. natural honey falling within CN code 0409 00 00;
7. other edible products of animal origin falling within CN codes 0410, 0504 00 00, 0506 90 00, 0507, 0508 00, 0511 91 and 0511 99;
8. edible vegetables, plants, roots and tubers falling within CN codes 0701-0714, with the exception of those falling within CN codes 0701 10 00, 0703 10 11, 0712 90 11, 0713 10 10 and 0713 33 10;
9. edible fruit, peel of citrus fruits or melons, falling within CN codes 0801-0814 00 00;
10. coffee, tea, maté and spices, falling within CN codes 0901-0910;
11. cereals falling within CN codes 1001-1008, except for those intended for sowing falling within CN codes 1001 11 00, 1001 91, 1002 10 00, 1003 10 00, 1004 10 00, 1005 10, 1006 10 10, 1007 10 and 1008 21 00;
12. products of the milling industry, malt, wheat gluten, falling within CN codes 1101-1107 and 1109, except those falling within CN code 1106 20 10;
13. oil seeds and oleaginous fruits, miscellaneous seeds and fruits, fodder, falling within CN codes 1201-1206, 1208 and 1214, except those falling within CN codes 1201 10 00, 1202 30 00, 1204 00 10, 1205 10 10 and 1206 00 10;
14. animal or vegetable fats and oils, their cleavage products, processed edible fats, falling within CN codes 1501 to 1517, except those falling within CN codes 1503, 1505 and 1515 30;
15. preparations of meat, fish or crustaceans, molluscs or other aquatic invertebrates, falling within CN codes 1601 to 1605;
16. sugars and sugar products, falling within CN codes 1701-1704;
17. cocoa and cocoa preparations, falling within CN codes 1801-1806;
18. preparations of cereals, flour, starch or milk, pastry and cakes, falling within CN codes 1901-1905;
19. preparations of vegetables, fruits or other parts of plants, falling within CN codes 2001-2009;
20. miscellaneous food preparations falling within CN codes 2101-2106, except for preparations containing alcohol falling within CN code 2106 90 20;
21. beverages, edible vinegar and substitutes for edible vinegar obtained from acetic acid, falling within CN codes 2201 and 2209 00;
22. residues and waste from the food industries, prepared animal feed, falling within CN codes 2301, 2302, 2304-2306, 2308 and 2309.

Example: An agricultural producer sells apricots falling under CN code 0809 10 00 to a trader. The agricultural producer applies the VAT rate of 11% for the delivery. In turn, the trader sells the apricots at the rate of 11%, regardless of the subsequent destination of the delivered fruits: food, raw material for jam, compotes or alcohol production.

3. According to the Fiscal Code, foods with added sugar, whose total sugar content is at least 10 g/100 g of product, other than powdered milk for newborns, infants and young children, do not benefit from the reduced VAT rate.

Based on the list of ingredients, it is determined whether they have added sugar, regardless of the quantity, and the total sugar content is that provided in the nutritional information.

4. For the delivery of the following goods, with the exception of foodstuffs with added sugar, the total sugar content of which is at least 10 g/100 g of product, due to their nature, the reduced VAT rate of 11% shall be applied by any supplier, only if he can prove that they are used as foodstuffs intended for human or animal consumption:

1. oil seeds and fruits, miscellaneous seeds and fruits, raw cereal straw and husks, falling within CN codes 1207, 1212 and 1213, with the exception of those falling within CN codes 1207 21 00, 1207 40 10, 1207 50 10, 1207 91 10 and 1207 99 20;
2. residues and waste from the food industry, falling within CN codes 2303 and 2307;
3. salt intended for human or animal consumption and falling within CN code 2501 00; 
4. starches, inulin, falling within CN code 1108."

5. According to the Fiscal Code, accommodation in the hotel sector or sectors with a similar function, including the rental of land arranged for camping, benefits from a reduced VAT rate (11%).

For the purposes of this provision, accommodation in the hotel sector or sectors with a similar function means accommodation in tourist reception structures with tourist accommodation functions provided for in art. 2 letter d) of Government Ordinance no. 58/1998 on the organization and development of tourism activity in Romania. The reduced tax rate of 11% applies to the types of accommodation in tourist reception structures with accommodation function, provided for in art. 2^1 of Government Ordinance no. 58/1998, approved with amendments and completions by Law no. 755/2001, with subsequent amendments and completions. In the case of accommodation with breakfast, half board, full board or "all inclusive", as defined in art. 2^1 of Government Ordinance no. 58/1998, approved with amendments and completions by Law no. 755/2001, with subsequent amendments and completions, the reduced VAT rate is applied to the total price of the accommodation, which may also include alcoholic beverages, non-alcoholic beverages falling under CN code 2202, as well as foods with added sugar, whose total sugar content is at least 10 g/100 g of product.

6. According to the Fiscal Code, restaurant and catering services benefit from the reduced VAT rate, with the exception of alcoholic beverages, as well as non-alcoholic beverages falling under CN code 2202.

Any combination of alcoholic and non-alcoholic beverages, regardless of the alcoholic strength, is considered an alcoholic beverage. For alcoholic beverages, as well as for non-alcoholic beverages falling under CN code 2202, served at a restaurant or offered in the case of catering services, the standard VAT rate is applied, without considering that a separate delivert of goods takes place, the provision of beverages being part of the restaurant or catering services

7. The reduced tax rate of 11% provided for in art. 291 paragraph (2) letter l) of the Fiscal Code, for the delivery of housing, applies only to the delivery of housing as part of social policy, respectively for the transfer of the right to dispose of the goods as an owner provided for in art. 291 paragraph (2) letter l) of the Fiscal Code. 

Taxable persons who deliver housing will apply the 11% rate, including for the advances related to these deliveries, if the contracts concluded show that at the time of delivery the conditions imposed by art. 291 paragraph (2) letter l) of the Fiscal Code will be met. In the event that the advances were invoiced by applying the standard VAT rate, upon delivery of the real estate, the adjustments provided for in art. 291 paragraph (6) of the Fiscal Code shall be made in order to apply the 11% rate, if the conditions imposed by art. 291 paragraph (2) letter l) of the Fiscal Code are met at the date of delivery.

For the buildings provided for in art. 291 par. (2) letter l) of the Fiscal Code, the buyer shall provide the seller with an affidavit, authenticated by a notary, stating that he will use these buildings in accordance with the purpose provided for by law, which shall be kept by the seller to justify the application of the reduced VAT rate of 11%. The declaration must be submitted at the latest by the time of delivery of the building in question.

8. The provisions regarding the application of the reduced VAT rate for the delivery, import or intra-Community acquisition of notified food supplements that can be found on the website of the Ministry of Health or the National Research Institute are hereby REPEALED.

9. In the event that a package is sold that includes goods/services subject to both the reduced VAT rate and the standard VAT rate and a main transaction can be established, the VAT rate applicable to the package is the VAT rate applicable to the main transaction, according to point 23 paragraph (1) letter b), even if the price of each element that makes up the total price paid by a consumer to benefit from this service can be identified, as was also ruled by the European Court of Justice in Case C-463/16 Stadion Amsterdam CV. 

Example: A taxable person registered for VAT purposes offers the possibility of purchasing a package of goods and services consisting of access to a sporting event and facilities within the sporting event, such as catering/restaurant services, food products, access to parking. In this situation, even if the price of each element that makes up the total price paid by a consumer to benefit from this service could be identified, the VAT rate applicable to the package is 21%, namely the VAT rate related to access to the sporting event which represents the main service.

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