A number of legislative innovations in the field of VAT will enter into force on January 1, 2023 as a result of amendments to the Fiscal Code by Government Order No. 1. 16/2022, the greatest impact will be on the food, tourism and real estate sectors.

Increase in the VAT rate on certain drinks

For some beverages (mineral and carbonated waters containing sugar or other sweeteners or flavored, as well as other beverages, such as soy-based beverages), the VAT rate will increase from 9% to 19% from January 1, 2023. The text of the law refers to certain tariff codes that will be the subject of this increase, namely codes 2202 10 10 and 2202 99.

Therefore, manufacturers, distributors and retailers selling soft drinks should review the tariff classification of the products in the portfolio to avoid further surprises regarding the VAT rate applicable for sales in Romania (reduced rate). compared to the standard rate).

The analysis of the tariff classification of beverages sold is also of interest in the context of the implementation of the RO electronic invoice and RO electronic transport systems, both systems also covering products with NC code 2202.

At the same time, large taxpayers who are required to report under SAF-T will have to consider updating the VAT display if they are affected by the increase in the applicable rates, in the sense of using a different tax code for the SAF-T declaration starting from the first month of next year.

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Article supported by PwC Romania