Romania’s VAT Has Risen. Here’s What Retailers and Consumers Are Facing

As of August 1, 2025, Romania's VAT changes are in full effect. The standard rate has increased from 19% to 21%, and the previous reduced rates (5% and 9%) have been replaced with a flat 11% rate.

It’s a major shift not just in tax policy, but in how people shop, how retailers plan, and how brands respond. Prices have gone up. Consumer behavior is already changing. And across the retail ecosystem, everyone’s recalibrating.

What’s Happening on the Ground?

People are buying differently. With prices rising overnight, shoppers are more cautious. They compare more. They prioritize essentials. They wait for deals.

Supermarkets and discounters have moved fast:

• Reworking promotions and bundling strategies

• Highlighting private labels

• Trying to absorb part of the increase for top-selling items

For example, many chains chose to delay full price hikes on basic foods or household goods to preserve customer trust. Others introduced temporary discounts to smooth the transition.

According to Business Review, while the VAT increase does reduce purchasing power, it also creates an opportunity: to rethink pricing, product mix, and store experience.

What to Watch (and Measure)

VAT may be a national policy, but how it plays out happens store by store, SKU by SKU. For brands, this is not just a tax issue, it’s a visibility, accessibility, and perception issue.

Here’s what to monitor:

1. Price Elasticity by Category

Some categories are highly sensitive to small increases. Keep an eye on how demand shifts across SKUs and adjust packaging, format, or pricing strategies accordingly.

2. Retailer Adaptation Differences

Not all retailers respond equally. Some froze prices. Others adjusted quietly. Know where your products are priced fairly, and where they might be exposed.

3. Execution Consistency

In times of pressure, execution drops. Field audits and mystery shopping are more important than ever to ensure planograms, pricing, and promotions are implemented correctly.

4. Consumer Confidence Signals

Track shifts in shopper sentiment using loyalty data, feedback mechanisms, and front-line observations. People won’t always complain, but they will vote with their baskets.

What Comes Next?

Romania’s VAT hike is part of a broader effort to reduce the fiscal deficit. But for retailers

and brands, it’s an operational challenge that requires agility.

This is the moment to:

• Refine distribution plans based on changing store performance

• Improve price monitoring and promotional compliance

• Double down on shopper research, especially in high-churn categories

• Strengthen retail execution and brand visibility in key locations

Brands that respond not only with promotions, but with insight-driven action, will be the ones who maintain market share and possibly grow it.

How RDM Can Help

At RDM, we work with brands and retailers to turn market change into measurable action. With services like:

• Price Pulse. See what shoppers see, every week

• PromoPlan Compliance. Understand which campaigns work, and where

• Mystery Shopping. Get the unfiltered story from shelf to checkout

• Retail Census. Know where demand is shifting and which stores to target

Final Thought: It’s About the Perception

Shoppers may accept the VAT increase but only if they continue to feel like they’re getting value, clarity, and care.

That means:

• Being present on the right shelves

• Communicating value with empathy

• Making decisions based on what actually happens in-store, not just in strategy decks

At RDM, we help brands and retailers see clearly in moments of uncertainty. From mystery shopping to pricing audits to retail census insights, we turn on-the-ground realities into smarter strategies.

Want to know how VAT has impacted your brand in-store? Let’s look at the shelf together.