Official Journal of the European Union L117/1 May 2012 has published COUNCIL IMPLEMETING DECISION of 26 April 2012 authorising Romania to apply measures derogating from Article 26 (1) (a) and Article 168 of Directive 2006/112/EC on the common system of value added tax.
Under the aforementioned EU Council Decision, Romania is authorised to limit to 50% the right to deduct the VAT on transactions related to motorised road vehicles when such vehicles are not used exclusively for business purposes. Such transactions refer to:
– purchase, intra-Community acquisition, importation, hire or leasing of motorised road vehicles;
– expenditure related to such vehicles.
These provisions shall take effect at the date on which they are transposed to the national legislation, being valid until 31 December 2014 or until new rules of the European Union, amending the Community legislation in this respect, come into force.
The categories of motorised road vehicles to which these provisions are not applicable shall be the same as stipulated by the Romanian Tax Code.
TAX ALERT by Mazars Consulting / MAZARS ROMANIA
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