Shopfully: Higher VAT rates in Romania impact consumer spending and retailers

Business Forum

27 August, 2025 at 2:58 PM

Starting August 1, Romania's new fiscal package increased the standard VAT rate from 19% to 21%. It also merged the 5% and 9% reduced rates into a single 11% rate. This has led to an immediate drop in consumer purchasing power as prices for food, medicine, and cultural activities have all increased.

The change also prompted a rush of last-minute real estate transactions as buyers tried to benefit from the former, lower VAT rates.

"Romanians are some of the most careful shoppers in Europe. They research thoroughly, check price lists, and look for the best deals," said Cătălin Pațachia, Country Manager at Shopfully.

Retailers have had to quickly update their systems to comply with the new rates, a technically complex task that was executed without major issues. The challenge now lies in navigating increased operational costs while consumers become more sensitive to price changes.

A study by Shopfully suggests the VAT increase could reduce monthly budgets for non-essential purchases by 5-7%, making consumers more focused on promotions and personalized offers.

While the short-term impact is one of pressure, the change presents an opportunity for retailers to adopt smarter strategies.

This includes using intelligent pricing, enhancing operational efficiency through digital tools, and maintaining transparent communication with customers to build trust.

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