Tax alert 7 – Order regarding the applicability of the reduced VAT rate of 9% in the agricultural field

Order of Minister of Public Finances and of Minister of Agriculture and Rural development (OMPFMA) no. 3132/2017 for modification of OMPFMA no. 1155/868/2016 regarding the applicability of the reduced VAT rate of 9% for supplies of fertilizers and pesticides used for agriculture purposes, seeds and other agriculture products for sowing or plantation, as well as for specific services used in agricultural field was published in the Official Gazette no. 049.

New categories of goods subject to 9% reduced VAT rate were introduced having the following customs codes:

  • Pesticides: 3808 59; 3808 61; 3808 62; 3808 69;
  • Seeds or other products used for sowing or plantation: 1207 7000.

Also, new categories of services were included in the Annex to the OMPFMA of services used in agriculture subject to 9% reduced VAT rate.

Following this change, the differences in the tax treatment of various goods and services used in agriculture are eliminated.

Author:

Costin Manta – Tax Senior Manager



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