- 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
Latest Posts in "European Union"
- EU Parliament Reconsiders VAT Reverse Charge Amid Fraud Concerns and Digital Reporting Advances
- Does a Subsidiary Create a Fixed Establishment for VAT? Insights from Dong Yang Electronics Ruling
- CJEU’s Titanium Ltd Ruling: Redefining Fixed Establishment for Cross-Border VAT in the EU
- EU Parliament Proposes 200 Amendments to Modernize VAT and Tax Rules for Financial Sector
- VAT Concepts Explained: Bad Debt Relief and VAT Credit Notes
