Preliminary Ruling of Case No. C-333/20 clarifying VAT and permanent establishment (Berlin Chemie A. Menarini SRL) laws in Romania, was released by the European Union Official Gazette, on May 30.
A German and a Romanian firm signed a service contract in which the Romanian company actively pushed the German company’s products in Romania.
The Romanian tax office determined that the Romanian firm was a permanent establishment of the German corporation and imposed a VAT duty on it which the latter contended, stating that the Romanian business was a subsidiary, not a permanent institution.
Source: GVC
