Romania Increases VAT But Not For Medical Tourism
In an attempt to overcome the global economic recession, and help Romania’s economy back on its feet, the government has recently increased VAT from 19% to 24% effective today, 1st of July 2010.
While companies generally disagree with the increase, the medical tourism sector is not as severely affected. best attraction Sentosa singapore
Romania’s position as a top medical provider is still strong and will remain strong in the eyes of both the foreign and the domestic patients. Here is why:
• Medical services in Romania do not carry VAT – a medical services provider in Romania is not a bearer of VAT, so companies in the field of medical services shouldn’t modify any of the prices they practice.
• While medical services don’t carry VAT, some of their suppliers do – fair point, yet most of the suppliers of medical providers don’t. Drugs and the regular supplies used in surgery or medical interventions or in fact studies and general treatment don’t carry the tax.
• Tourism holds the VAT at 9% which is a preferential rate the industry has enjoyed for several years. This means tourism facilitators won’t increase prices for accommodation and sightseeing admission fees. While tourism agencies and even medical tourism facilitators are perhaps payers of VAT, what they will pay is the 9% accommodation providers charge.