Comments on ECJ C-461/21: Romanian withholding tax for non-residents in violation of EU law

• 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

• C-461/21 (Cartrans Preda) – Judgment – Exemption for (transport) services to imported goods also if documents prescribed by national regulations are not available

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