Tourist boarding houses, chalets and family restaurants in Romania providing agri-food products could benefit of 5% VAT

On May 26, the senators adopted with the amendments of Economic Commission, the law initiative to encourage setting up and developing small enterprises which provide for consumption agri-food products exclusively obtained through own means.

The law initiative specifies that boarding houses, chalets and family restaurants providing for consumption agri-food products exclusively obtained through own means should benefit of a lower VAT of 5%.

The initial proposal sustained VAT exemption for these type of small enterprises.

According to the law initiative, revenues resulted from tourist services or food and beverage services based on agri-food products, obtained exclusively by own means or obtained by an acquisition note from individuals could be considered totally as tax-free revenues.

According to the project the senators voted, the law envisage the small enterprises ensuring tourist services in boarding houses and agri-tourism pensions or tourist chalet or providing food services in family restaurants or local cuisine restaurant.

The Senate adopted the law initiative as the first Chamber notified.

Sursa: Daily Business [26.05.2010], InCont.ro [26.05.2010], Mediafax [26.05.2010], Romania Libera [26.05.2010]