Gavrilita confirms: A major tax overhaul is in the works. How will it affect restaurants and hotels?

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The Ministry of Finance is analyzing a possible revision of the VAT rate for the HoReCa sector, but any decision remains at the working stage, said Andrian Gavrilita. He stressed that the planned tax reform is broad and that VAT represents only one component of the overall reassessment process.

“We are reevaluating the entire tax system. VAT is a small component of it. The objectives are very simple and clear: simplicity, convenience, competitiveness, and compliance,” the minister said before the Government meeting.

Gavrilita emphasized that authorities are relying on both local and international expertise and that it is too early to specify what the VAT rate for HoReCa might be. “It is too early to say what the rate should be, but we will certainly aim for greater fairness in the tax system and for as prosperous an economy as possible,” he added.

The Ministry of Finance is holding consultations with the business community. It recently met with tourism associations to review existing support mechanisms, including meal and vacation vouchers, facilities for reinvested profits, and initiatives to reduce the wage burden.

“The doors of the Ministry of Finance are open to all business associations. We have not refused anyone and we will continue discussions,” the minister said.

Authorities will submit the updated fiscal policy to public consultations in the spring, and they will not implement any potential changes abruptly. According to Gavrilita, any modification would take effect no earlier than January 1, 2027.

Commenting on a scenario circulating publicly about an 18 percent VAT rate for HoReCa, the minister said it is only an estimate and that the discussion is premature. He noted that the current tax system contains inequities. “Unfortunately, we have a situation where teachers and police officers pay around 40 percent of their salaries, while others pay 1 percent. There is room for revisions to ensure greater fairness,” he stated.