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.

The future of retail is about belonging, not just buying

Once considered a purely transactional asset class, retail in CEE is rapidly evolving into a platform for experience, community, and brand identity. This shift was at the centre of the discussion at SEE Property Forum 2025, where industry leaders explored how shopping centres are adapting to changing consumer expectations, ESG requirements, and the growing demand for meaningful, multi-use spaces. 

Real estate

Erste Group provides €85.5 million refinancing for mall in Romania

Erste Group Bank AG has provided a €85.5 million refinancing facility for Argeş Mall in Piteşti, developed by Prime Kapital.

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.  

Economy

Study: Physical retail dominates, with major brands rapidly expanding in Europe

72% of retailers aim to increase their store space, compared to 26% in 2022, with physical stores remaining a key element in the overall strategy.

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. 

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. 