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 of Appeal Bucharest (Romania) lodged on 26 April 2018 — Group Oil Services SA v National Agency for Fiscal Administration – General Directorate for Solving Complaints, National Agency for Fiscal Administration
— General Directorate for the Administration of Large Contributors
Language of the case: Romanian
Referring court:Court of Appeal Bucharest
Parties to the main proceedings
Applicant: Group Oil Services SA
Defendants: National Agency for Fiscal Administration – General Directorate for Solving Complaints, National Agency for Fiscal Administration, General Directorate for the Administration of Large Contributors
Must Article 148(c) of Directive 2006/112/EC on the common system of value added tax,1 in conjunction with Article 148(a) of that regulation, be interpreted as meaning that the exemption from value added tax applies, in some circumstances, to the sale of offshore jackup drilling rigs, that is to say, are offshore jackup drilling rigs covered by the term ‘vessels’ within the meaning of that provision of EU law, given that, according to the title of Chapter 7 of that directive, that provision lays down rules governing ‘exemptions related to international transport’?
If the answer to the first question is in the affirmative, must Article 148(c) of Directive 2006/112/EC, in conjunction with Article 148(a) of that regulation, be interpreted as meaning that an essential condition for applying the exemption from value added tax to an offshore jackup drilling rig, which has navigated into international waters, is that it must in fact be in a state of movement while it is being used (for commercial/industrial activities), floating or moving at sea from place to place, for a longer period than the period during which it is stationary or immobile, as a result of carrying out drilling activities at sea — that is to say, that navigation must in fact predominate via-à-vis drilling activities?
Contact an Advisor
If you have any questions regarding this topic and how it might have an impact on your business, please contact the Mirus Consultant with whom you regularly work, or: