In the context of the amendments of the VAT rates, we remind you of the following essential  rules regarding the adjustment of the applicable rate 

• In the event of a VAT rate amendment, an adjustment is mandatory in order to reflect the rate  in force on the date of supply of the goods or services, including the cases where the invoice  is issued or the advance payment is received prior to the moment of the chargeable event. 
• The correct determination of the date of the chargeable event is important, as taxpayers have  the obligation to perform the adjustment, respectively to cancel the initial invoice and to issue  a new invoice applying the VAT rate valid on the date of the chargeable event. 

Supply of goods – determination of the chargeable event 

• Consignment contracts – the chargeable event for the supply from the consignor to the  consignee occurs on the date on which the goods are supplied by the consignee to its  customers; 
• Goods sent for testing or verification of conformity – the chargeable event occurs on the  date of acceptance of the goods by the recipient; 
• Stocks at the customer’s disposal – the chargeable event occurs on the date of withdrawal  of the goods from the stock by the customer; 
• Supplies of tangible goods (including immovable property) – the chargeable event occurs  on the date of transfer of the right to dispose of goods as an owner; 
• Contracts with installment payments (including those in which the property is transferred  upon payment of the last installment due at the latest) – the chargeable event occurs on the  date of delivery of the property to the recipient; 
• Continuous supplies of goods (e.g. natural gas, water, electricity) – the chargeable event  occurs on each payment date provided for in the contract or, in lack of such date, on the date  of issuing the invoice. 

Supply of services – determination of the chargeable event 

• Services with successive settlements or payments (e.g. construction-assembly,  consultancy, research, expertise) – the chargeable event occurs on the date of issuance of  the work situations or work reports or, depending on the contractual arrangements, on the  date of their acceptance by the recipient. 

Practical example:  

1. The work reports or work situations are issued or accepted in July, and the invoice is  issued in August – the VAT rate in force in July is applied, regardless of the date of the  invoice, without an adjustment obligation;
2. The work reports or work situations are issued or accepted in August, and the invoice is  issued or the advance payment is received in July – the VAT rate in force in August is  applied, and an adjustment is necessary (the cancellation of the initial invoice and  issuance of a correction invoice with the VAT rate in force in August). 

• Services provided on a continuous basis (e.g. telecommunications, rental, leasing,  concession, lease of goods, granting for a determined period of real rights, such as usufruct  or superficies, over an immovable property) – the chargeable event occurs on the date  provided in the contract for payment or, in the absence of such a contractual arrangement,  on the date of the invoice. 

Practical example:  

1. The date of payment according to the contract is in July, and the invoice is issued in  August – the VAT rate in force in July is applied, regardless of the date of the invoice,  without the obligation to perform an adjustment; 
2. The date of payment according to the contract is in August, and the invoice is issued in  July – the VAT rate in force in August is applied, and the adjustment is necessary  (cancellation of the initial invoice and issuance of a correction invoice with the VAT rate  in force in August). 

The situations and information presented above are of a general nature, but, from a practical point of  view, there may be particular cases, which will have to be analyzed individually depending on the  specifics and context in which the respective operations were carried out. 

Decision no. 602/2025 for amending and supplementing Title VII “Value Added Tax” of the  Methodological Norms for the application of Law no. 227/2015 on the Tax Code, approved by  Government Decision no. 1/2016 

(Official Gazette no. 715 of 31.07.2025) 

Decision no. 602/2025 amends and completes to the Methodological Norms for the application of Law  no. 207/2015 regarding the Tax Code as follows: 

• Clarifications are made on the definition of “food intended for human consumption”  respectively “food intended for animal consumption”. 
• Amendments are made regarding the CN codes and products to which the new reduced VAT  rate applies, especially with regard to operations consisting of the suplly of food, including  beverages, intended for human and animal consumption, live animals and birds of domestic  species, regulated by art. 291 para. (2) letter b).

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For additional details regarding the above, you can contact any member of the Taxhouse team or you can send us an e-mail at office@taxhouse.ro.