- The EU Court of Justice has ruled that Romania is violating EU law by withholding a withholding tax on the compensation paid by Cartrans to FDE for the recovery of VAT in various EU member states.
- Cartrans disagrees with the designation of these fees as ‘commission’ and argues that the compensation should be regarded as consideration for services, which limits the freedom to provide services within the EU.
- The court has stated that the recovery of VAT constitutes a service and it is against EU law to withhold tax on compensation paid to non-residents while not doing so for resident service providers.
Source Taxlive
See also
- Join the Linkedin Group on ECJ VAT Cases, click HERE
- For an overview of ECJ cases per article of the EU VAT Directive, click HERE
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