In the second half of 2025, the fiscal package announced for August brings significant changes that will affect companies and individuals, highlighting the need for rapid adaptation and careful planning.

Starting August 1, 2025, a new VAT framework will come into effect: the standard rate will increase from 19% to 21%, and the two reduced rates (5% and 9%) will be replaced by a single reduced rate of 11%. This change will have a direct impact on prices, with an estimated inflation increase of approximately 0.4 percentage points for each percentage point of VAT. The HoReCa sector will remain under the reduced rate of 11%, at least until a potential review of the fiscal changes in October.

Excise duties will also be increased by about 10% starting in August, for a wide range of products such as tobacco (including new forms of consumption), alcohol, sugar-sweetened beverages, and fuels.

Another important element concerns the Health Insurance Contribution (CASS): starting August 1, a 10% CASS rate will apply to pension income exceeding 3,000 lei/month, extended also to private and foreign pensions.

These fiscal changes are part of a broader governmental effort aimed at quickly reducing the budget deficit, estimated at over 8% of GDP, as well as aligning Romania with EU rules and the criteria for joining the eurozone.

Salaries are also under considerable pressure. The government has decided to freeze public sector wages and introduced, in February 2025, a mechanism for setting the minimum wage, aiming to reduce inflationary pressures and labor-related costs. In the private sector, wages continue to grow, but at a strategically controlled pace, to attract and retain valuable employees while avoiding inflationary escalation.

In parallel, fiscal digitalization is advancing rapidly. Projects such as RO e-Transport, e-Factura, and SAF-T require companies to invest in ERP systems and AI-based accounting solutions. Starting July 7, 2025, failure to declare high-fiscal-risk transports may lead to confiscation of up to 100% of goods after repeated violations. Overall, these strict rules turn digital compliance from an option into an essential operating requirement.

Companies must review their pricing and margins through detailed cost and profitability analyses for each product or service, in order to decide whether cost increases will be passed on to customers, absorbed in margins, or managed internally. It is important for ERP systems to be updated to handle the new VAT rates, excise duties, and contributions, while accounting and payroll processes must be adapted to avoid reporting errors and potential penalties. To maintain healthy cash flow, companies must carefully plan purchases and payments, ensure sufficient liquidity, and renegotiate payment terms with suppliers and clients as needed. At the same time, it is recommended to explore financing programs offered by the European Union, such as PNRR and MFF, which can support IT infrastructure upgrades, digital skills development, and business digitalization, thus helping reduce cash flow pressure and improve operational efficiency.

In this period of major fiscal changes, the support of a dedicated tax consultant becomes more important than ever. Our team can assist you with detailed analyses, strategic recommendations, and practical implementation of the new measures, ensuring that your business adapts quickly and effectively to the new legislative requirements.

Contact the Cabot team for a personalized discussion on the impact of these changes on your company: https://cabot-tp.ro/contact/