VAT Exemption Granted for Supplies Delivered to Hospitals in Romania
New VAT Exemptions Introduced in Romania for Supplies to Hospitals
The Romanian government has enacted Law No. 88 of 11 April 2023, which introduces several new VAT exemptions. These exemptions are applicable to various supplies made to hospitals and aim to support the healthcare sector. The key provisions of the law are as follows:
- Construction, rehabilitation, and modernization services provided to public hospitals and non-profit hospitals registered with the Public Register of the National Agency for Fiscal Administration (ANAF) are exempt from VAT.
- Supplies of medical equipment, appliances, devices, articles, accessories, protective equipment, materials, and consumables for sanitary use, intended for healthcare purposes or for the use of disabled individuals, as well as essential goods for compensating and overcoming disabilities, are exempt from VAT. Additionally, the adaptation, repair, rental, and leasing of such goods to public and non-profit hospitals are also covered by the exemption.
- Prostheses and their accessories, excluding dental prostheses (which have a separate VAT exemption), are exempt from VAT.
- Orthopedic products are also exempt from VAT.
Furthermore, Law No. 88 removes prostheses and orthopedic products from the reduced 9% VAT rate.
The implementation of the VAT exemptions for supplies to hospitals will vary depending on the type of hospital:
- Public hospitals will directly apply the VAT exemption by invoicing supplies without VAT.
- Non-profit hospitals will indirectly benefit from the exemption through a VAT refund mechanism.
Law No. 88 will come into effect 60 days after its publication, on 11 June 2023. These measures aim to support the healthcare system and facilitate access to essential medical supplies and services for hospitals in Romania.