Comments on ECJ C-527/23: Romania wrongly refuses to deduct VAT on services provided by group company

• EU Law Violation: The Court of Justice of the European Union (CJEU) ruled that Romania’s denial of VAT deductions for services provided to Weatherford Atlas by group companies, which were also supplied to other companies in the group, is contrary to EU law.
• Background of the Case: Weatherford Atlas, part of the Weatherford group specializing in petroleum services, faced scrutiny from Romanian tax authorities regarding VAT deductions for administrative services purchased in 2015 and 2016 from group companies, particularly after the merger with Foserco SA.
• Conditions for VAT Deduction: The CJEU stated that while Romania cannot deny the VAT deduction, it must be demonstrated that Weatherford Atlas used these services for its own taxable transactions, emphasizing the necessity of establishing a clear link between the services acquired and the taxed activities of the company.

Source Taxlive

See also

• C-527/23 (Weatherford Atlas Gip) – Judgment – Refusal of the right to deduct if services are not used for taxable transactions

 

---

---