European Court of Justice – Vega International

On 15 May 2019, the European Court of Justice published a ruling in the case of Vega International. This case is likely to, once again, create considerable uncertainty regarding the VAT treatment of fuel supplies carried out using fuel cards. The ECJ has reclassified the supplies and now regards this form of transaction as a […]

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Hague apostille exemption and other formalities regarding public documents used by the EU member states

Starting with 16.02.2019, article 27 para (2) from the EU Regulation no. 2016/1191 on promoting the free movement of citizens by simplifying the requirements for presenting certain public documents in the European Union, will be applicable. Purpose – removing bureaucratic formalities regarding some public documents, such as: apostile process, authorized translations, certified copies. Area of […]

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Registration for VAT purposes begining with February 1st

Starting with February 1st, 2019, taxable persons opting for the registration for VAT purposes have the obligation to submit the Affidavit for the registration for VAT purposes. The Affidavitshould be filled in with the assistance program available on NAFA website and is submitted with the PDF file, signed with a qualified digital certificate, by remote […]

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VAT treatment of vouchers

EU Member States had to transpose Directive 2016/1065, which introduced new rules in relation to the issuance, transfer and redemption of vouchers. The new provisions mainly distinguish two types of vouchers: the single-purpose vouchers (SPV) and the multi-purpose vouchers (MPV). As regards the SPV, VAT becomes due upon the issuance and the subsequent sales of […]

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Entry into force of the threshold for e-services

The 10,000 € threshold for e-services entered into force on 01/01/2019. In principle, the place of supply of telecommunications, broadcasting and electronically supplied services to non-taxable persons is in the Member State of the customer. However, as from 01/01/2019, the place of supply may be in the Member State of the supplier where notably these […]

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Right to deduction – Incorrect description of the goods on the invoices

The tax authorities may not refuse a taxpayer the right to deduct input VAT on the sole ground that the purchase invoices contain an error relating to the identification of the goods which are covered by the transactions. Penalizing the taxpayer’s failure to comply with formal conditions by refusing the right of deduction goes beyond […]

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Approval of the 2019 quota for newly admitted foreign employees to the labour market

The Government Decision no. 34/2019 sets out a total number of 20.000 work permits that might be issued in 2019 to foreign citizens belonging to other states than the European Union Member States or the European Economic Area or the Swiss Confederation, or to foreign citizens whose free access to the labor market is established […]

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Amendments to the Fiscal Procedure Code

– Foreclosure and Mediation procedure – On January 17, 2019,  Law no. 30/2019 regarding the approval of the Emergency  Government Ordinance no. 25/2018 on the modification of certain regulations, such as those concerning the approval of fiscal-budgetary measures, was published. Therefore, the Fiscal Procedure Code was directly endorsed and several amendments were brought. Thus, in […]

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Legislative changes regarding the increase of minimum gross wage per economy and its impact on the international mobility

Starting with 01.01.2019, the minimum gross wage per economy guaranteed will be increased from Ron 1900 to Ron 2080, for employed personnel with 8 hours/day, 40 hours/week. According to the legal provisions regarding the regime of foreigners in Romania, the following categories of Non-EU citizens must align their salaries at the level of the minimum […]

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Clawback return to be modified in two steps

The clawback tax mechanism will be changed in two steps, with the Medicines Health House’s budget first being indexed to the inflation rate and, in the second stage, revising the formula for calculating the contribution, announced ,  Augustus Costache, spokesman for the National Health Insurance House (CNAS). Bringing the budget up to date by updating […]

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Legislative changes of some normative acts regarding the regime of foreigners in Romania, in force starting with 09.11.2018

Law no. 247/2018 amends and supplements GEO no. 194/2002 on the regime of foreigners in Romania as well as Government Ordinance no. 25/2014 regarding the employment and secondment of foreigners on the Romanian territory, according to the below: Main legislative changes of Ordinance no. 194/2002 Employers will have the obligation to notify the Immigration Office […]

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E.U. COURT OF JUSTICE / Right to deduction in case of cancelled acquisition of shares

By the planned acquisition of shares in the target company, potential acquirer’s intention was to provide the target company with management services and, on that basis, to carry out an economic activity. Such an activity gives rise to VAT deduction on expenditure relating to consultancy services and other services in connection with the planned acquisition […]

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Updates regarding secondment of workers in the framework of the provision of services

In the Official Journal of the European Union from 01.07.2018 has been published the European Directive no. 2018/957 amending the EU Directive no. 96/71/EC concerning the posting of workers in the framework of the provision of services. This Directive entered into force on 29.07.2018, following to be implemented by the Member States by latest 30.07.2020. […]

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The reverse charge will be extended until June 30, 2022

The period of application of the reverse charge mechanism in relation to operations involving goods and services at risk of fraud was extended until 30 June 2022. The Council of the European Union adopted this measure to combat fraud in the field. Among the products subject to reverse charge in Romania are cereals, mobile phones […]

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Romanian Parliament Approves Tax Law for Natural Gas Sector

Romania’s Chamber of Deputies (lower house of Parliament) on July 9 approved the amended draft of a law on the taxation of offshore oil and gas production. The legislation was initially amended and approved by the Senate on February 12. It still requires the president’s signature before its measures will enter into force. Under the […]

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CJEU to Consider Romanian VAT Exemption for Drilling Rigs

Summary The Court of Justice of the European Union has published the reference for a Romanian case (C-291/18) on whether article 148(c) of EU VAT Directive (2006/112/EC) should be interpreted to mean that the sale of offshore jackup drilling rigs may be eligible for a VAT exemption. Request for a preliminary ruling from the Court […]

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VAT Directive Precludes Romanian Transport Services VAT Deduction Rules

Citations: Cartrans Spedition Srl v. Romania; C-495/17 Summary Advocate General Eleanor Sharpston in Cartrans Spedition Srl v. Romania, C-495/17, called on the Court of Justice of the European Union to find that articles 146(1)(e) and 131 of the EU VAT Directive (2006/112/EC) preclude Romania from requiring the production of specific documents affirming the road transport […]

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Update to the GD no. 946/2017 on establishing the quota types of 2018 newly admitted employees to the labour market

Government Decision no. 946/2017 published in the Official Gazette on 29th of December 2017, established a total number of 7000 employment permits which could be issued in 2018 to Non-European citizens, of which 4000 were for permanent workers and 1200 for seconded workers. Since on the 9th of July 2018, the quota for seconded foreign […]

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Legislative changes regarding the conditions of issuing the employment approvals for foreign citizens

According to Government Emergency Ordinance no. 75/2018, art. 4 paragraph 2 from Ordinance no. 25/2014 regarding the employment and secondment of foreign citizens on the Romanian territory, will be modified as follows: The eligibility condition regarding the employment of foreign citizens on the Romanian territory is considered that the Romanian employer has not been sanctioned […]

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Taxpayers will be able to argue more effectively against transfer pricing readjustments following a key ruling on the arm’s-length principle in the Hornbach-Baumarkt case

The ECJ ruled that member state tax rules are proportionate (and therefore in line with EU law), saying taxpayers in the EU have the right to demonstrate that they may have had commercial reasons for failing to meet the standard required of the arm’s-length principle. Facts of the case This time, the ECJ ruled on […]

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