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The tax base of VAT

The High Court of Cassation and Justice decided that the tax authority acted incorrectly when applying the legal VAT rate for the entire amount paid by the purchaser as a sale price, therefore it is required to remake computations through a specialized expertise, so that, according to the CJEU judgment, the principle of VAT neutrality is observed.

In this sense, with respect to the the VAT tax base, in answering the preliminary question referred by the High Court of Cassation and Justice, the CJEU stated that “when the price of a good has been established between the parties without any mention of the VAT, and the supplier of those goods is liable for payment of VAT due to the transaction subject to VAT, the price agreed has to be considered as already including the VAT, in case the supplier is not able to recover from the acquirer the VAT recquired by tax authorities. “(Decision no. 1793 of 4 April 2014 rendered by the fiscal and administrative contentious section of the High Court of Cassation and Justice for the annulment of a tax decision).

:: The Source: JURIDICE.ro

Adina Elena Oprea
Junior Lawyer

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