Where businesses keep stock locally to meet customer needs quickly, this may be classed as call-off or consignment stock. The VAT treatment of these differ and simplifications may be available. A common business practice for companies who provide regular supplies to customers is to keep inventory in a warehouse that either belongs to the customer […]
On 4th June, the Court of Justice of the European Union issued decision C-430/19, having an impact on the area of practice of tax inspections. Basically, in this way it was established that it is excessive on the part of the Tax Office to request other supporting documents besides the invoice, in order to benefit […]
Online marketplaces in the EU (such as Amazon, Ebay etc.) will become responsible for charging and collecting VAT for their non-EU sellers in an attempt to recover EUR 5 billion in VAT fraud. European Commission (EC), and ECOFIN finance ministers reached a decision in March and over the last couple of months they have discussed […]
Three Month Extension European leaders have approved UK’s request for a three-month extension for Brexit. Donald Tusk, president of the EU Council, informed that EU27 leaders have agreed to accept UK’s request for a Brexit “flextension” until January 31, 2020; the decision is expected to be formalized through a written procedure. Britain agreed to hold […]
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 […]
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 […]
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 […]
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 […]
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 […]
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 […]
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 […]
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 […]
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) […]
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 […]
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 […]
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, […]
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 […]
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 […]
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 […]
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 […]