A high VAT rate in HoReCa will not bring more money to the state, but rather bankruptcies, and a quarter of restaurants could disappear in a single year, due to economic adjustments, the Federation of Employers in the Hospitality Industry of Romania (FPIOR) draws attention, in a press release sent to AGERPRES on Wednesday.
"While lacking predictable and reasonable taxation, the sector risks an accelerated contraction, with direct effects on jobs, budget revenues and the economy. The federation's estimates show that, in a single year, between 15% and 25% of restaurants could disappear, mainly as a result of increased tax pressure and reduced demand. The hospitality industry currently operates with real profit margins of only 3-5%. In this context, any tax increase is not reflected in profits, but is inevitably transferred to prices, causing the loss of customers and, ultimately, the closure of establishments. We have clear examples in Europe: all the states that have overtaxed hospitality have subsequently reversed their decision, after waves of bankruptcies," claim representatives of the hospitality industry, agerpres reports.
According to the same source, in the context of increasing taxes and duties and reducing the appetite for consumption, in 2026 home deliveries and takeaway services will continue to grow rapidly, as more and more customers will prefer ordering at home, where they can more easily control the budget and avoid additional costs. Against this background, restaurants that do not effectively develop this channel risk constant losses of customers.
FPIOR data shows that, at the industry level, customer traffic has already decreased by approximately 15%, and the number of HoReCa units has decreased by approximately 10%, "clear signals of a market in adjustment, a process that will continue in 2026".
"The year 2026 will consolidate important changes in consumer behavior. Customers go out to the city less often, order less per visit and carefully calculate their bill. Products considered non-essential - desserts, coffee or additional drinks - are frequently eliminated, and the time spent in the restaurant is significantly shortened," the statement says.
At the same time, the organiszation estimates that the year 2026 will favour restaurants with affordable prices, simplified menus and clear and easy-to-understand offers for consumers.
On the other hand, overtaxation will bring bankruptcies, which will lead to financial losses for the state, while the low number of restaurants and high taxes will raise prices beyond the limits of the population.
The VAT rate for the HoReCa sector increased from 9% to 11% last year.
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