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

Business Forum
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.

RECOMMENDED
Romania leads in shopping centre entertainment
Real estate

Romania leads in shopping centre entertainment

Shopping centres in Romania are ahead of many European markets in providing entertainment options, establishing themselves as key leisure destinations, according to a recent analysis by Nhood Romania.  

Romanias retail market sees increased demand for experiential shopping
Real estate

Romania's retail market sees increased demand for experiential shopping

Affan Yildirim, General Manager, member of the Board of Directors of Anchor Grup, and member of the Board of Directors of MallDova, talked to Property Forum about the trends shaping the Romanian retail market and the investments made in București Mall over the past 25 years to accommodate evolving demands of tenants and shoppers. 

Mitiska REIM opens new retail park in Pitești
Real estate

Mitiska REIM opens new retail park in Pitești

Mitiska REIM has announced the opening of a new retail park in Pitești, the first of four new retail projects that the investor plans to open in Romania in the next two years. 

RECOMMENDED FROM THE HOME PAGE
Energy

Simtel Team appoints new CEO

Romanian energy company Simtel Team has appointed Petre Stoian as CEO to consolidate its management structure as the group expands its operations.

Industry

Romania's public administration seeks shared service centres

The Romanian government has adopted an emergency ordinance for administrative reform that officially recognises what specialists have long signalled: public administration is oversized, fragmented and financially unsustainable, according to an opinion by PwC Romania experts Dinu Bumbăcea and Cristian Cortez.

READ MORE
Business Forum  |  9 March, 2026 at 6:07 PM
Business Forum  |  9 March, 2026 at 5:02 PM