- C (Romania) is a limited liability partnership for professionals, including insolvency experts.
- The Romanian tax authority issued a VAT reassessment to C for the period from January 1, 2010, to July 31, 2014.
- The tax authority argues that VAT liability is unaffected by whether the collection of fees is conditional.
- The question is whether the 2003 Tax Code conflicts with Article 64 of the VAT Directive.
- The Curtea de Apel Cluj (Romania) referred preliminary questions to the Court of Justice of the European Union (CJEU).
- The CJEU ruled: 1. Article 64 of the VAT Directive includes services provided continuously over a period, such as those by administrators and liquidators in insolvency proceedings, provided these services result in successive statements or payments. 2. Article 64(1) of the VAT Directive does not allow VAT to become due only when the payment is actually received, even if the debtor lacks sufficient funds. 3. Article 168(a) of the VAT Directive requires a direct and immediate link between a specific transaction at an earlier stage and subsequent transactions that give rise to a deduction, considering all circumstances of the transactions. 4. The general EU principle of the right to be heard requires that a decision based on new factual and legal data, on which the interested party has not been able to comment, must be annulled if the procedure is irregular without this opportunity.
Source: nlfiscaal.nl
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
