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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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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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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Correcting errors in VAT returns

According to Order no. 3604/2015 for the approval of guidelines for the correction of material errors in Value Added Tax returns, VAT returns submitted by taxable persons registered for VAT purposes can be corrected for material errors by the competent fiscal authority: at its initiative; at the request of the taxable person; The fiscal authority […]

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VAT Deduction after Tax Authorities’ Assessment (12/04/2018 C-8/17 & 26/04/2018 C-81/17)

Where, following a tax adjustment, additional VAT was paid to the Treasury and was the subject of documents rectifying the initial invoices several years after the supply, Member States may not deny the right to deduct VAT on the ground that the regulatory period laid down for the exercise of that right has expired. (C-8/17) […]

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E-Commerce and VAT in Romania

Whether one sells through platforms such as Amazon, E-bay or your own website, when selling goods into the European Union one must be compliant with the VAT regulations of the member state of sale. Even if your business is not registered in Europe. The European Union estimates that around a whopping 50 billion euros in […]

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Bundled Supply & VAT Rate (C-463/16, 18/01/2018)

A single supply consisted of two distinct elements which would be subject to different rates must be taxed solely at the rate applicable to that single supply, even if the price of each element forming the full price can be identified. The Court emphasizes the consequence of a bundled or single supply on the VAT […]

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New VAT reform within the EU in an attempt to tackle cross border fraud

The EU Commission is preparing for the biggest reform of EU VAT rules in a quarter of a century, in an attempt to crack down on an estimated EUR 50 billion in tax revenue lost to cross-border VAT fraud between countries within the European Union (EU). Over 150 billion of VAT is lost every year, […]

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More flexibility on VAT rates, less red tape for small businesses

The European Commission has today proposed new rules to give Member States more flexibility to set Value Added Tax (VAT) rates and to create a better tax environment to help SMEs flourish. Today’s proposals are the final steps of the Commission’s overhaul of VAT rules, with the creation of a single EU VAT area to […]

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Commission objects to the request made by Romania to apply zero rate on certain supplies

By letter registered with the Commission on 26 April 2017, Romania requested based on Article 395 of the VAT Directive an authorisation to apply 0% VAT rate of VAT to a number of supplies of goods and services. Pursuant to Article 395 of the VAT Directive, the Council, acting unanimously on a proposal from the […]

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Split VAT payment mechanism makes Romania an EU pioneer

Romania could become the only EU member state to enforce the VAT split payment, and this will have a major impact on Romanian companies. After the new system is implemented, once a service is performed, the suppliers will provide the client with a VAT account. As a result of public consultations on the initial proposal […]

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Important ECJ rulings on customs value of defective goods and VAT taxable basis of leasing

Customs value of defective goods (X BV, C-661/15, 12/10/2017) An importer may adjust the customs value declared upon importation where it is established that, at the time of release into free circulation, there was a manufacture-related risk that the goods might potentially become defective in use, and in view of this, the seller, pursuant to […]

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Companies need to create a separate VAT account starting with September 1st”

Another very important element that will come into effect on 1 September is a VAT account. For those who are VAT payers, Romanian state wants to reduce VAT and, as in recent years, VAT collection is somewhere at 73-74%. The impact is that we annually lose somewhere between 16 and 20 billion RON. Starting with […]

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How many consultants one needs to change a lightbulb? The MOSS and distance sellers in a nutshell

The Mini One Stop Shop (MOSS) has been a debated subject ever since its introduction in 2015. The MOSS scheme is applicable for digital services, provided through internet or electronic network that can be provided with minimum human intervention). Given the definition, one (or more) may wonder why not include the e-commerce in this category.? […]

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Changes regarding the VAT registration procedure

Taxpayers are no longer required to submit the Statement 088 on the intention and capacity to carry out operations requiring VAT registration; The default cancellation of the VAT registration for taxpayers that cannot justify their intention and capacity to carry out operations requiring VAT registration is applicable only to taxpayers considered posing a fiscal risk. […]

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Challenge accepted: Distance seller and VAT registration in EU

But what to do when your business grows so much that clients from outside your country border are interested in the goods you provide? Establishing international presence If you can sell online, why limit yourself to the country of your residency? Most of you, business owners, will dismiss this idea because of the international tax […]

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The 088 statement for VAT registration purposes is being removed from 1 February 2017

Based on the latest governance programme, one of the Government’ s objective is to reduce taxpayers’ excessive administrative tasks, therefore ANAF has analyzed and decided the removal of the 088 statement. In order to avoid blocking the activity of taxpayers’ registration for VAT purposes and ensuring their further economic activity, the repealing order regarding the […]

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