Published in Scientific Papers. Series "Management, Economic Engineering in Agriculture and rural development", Vol. 21 ISSUE 1
Written by Beatris TENIE (VASILE-TUDOR), Alexandru FINTINERU, Dragoș SMEDESCU, Gina FINTINERU
Tourism is one of the most important industry of Romania, being considered a major source of income to the state budget, employment and investment. Taxes influence the development of the tourism and the value added tax (VAT) is a main factor of affecting the tourism competitiveness. The present study represents an analysis of VAT and of the impact of VAT rates on the tourism sector, respectively of the Romanian agritourism. Given the fact that VAT can be considered one of the most important types of taxes applied in the tourism sector, the study highlighted the immediate effect of reducing the VAT rate in 2018, compared to 2017 on overnight stays, arrivals and average length of stay, as well as the impact on the economy as a whole. At EU level, in 2017, the average standard VAT rate was 21%, a number of 21 countries having this average rate, including Romania, with 19%. Most Member States also applied reduced VAT rates for accommodation services, Romania being again one of them. Through this analysis it was concluded that in order to obtain the maximum effect of reducing the VAT rate in tourism, respectively agritourism, it takes several years for accommodation.
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