(January 27, 2015) 

On January 27, 2015 a meeting of the EU’s Economic and Financial Affairs Council took place. With respect to this meeting a document titled: “OUTCOME OF THE COUNCIL MEETING - 3366th Council meeting - Economic and Financial Affairs - Brussels, 27 January 2015” was published on the website of the Council of the European Union.

The document contains the following paragraph:

“VAT derogation - Romania 

The Council adopted a decision authorising Romania, by way of derogation from articles 26(1)(a) and 168 of directive 2006/112/EC on VAT, to continue to limit to 50 % the right to deduct VAT:

-       as regards the purchase, intra-EU acquisition, importation, hire and lease of motorised road vehicles;

-       on expenditure related to such vehicles, including fuel, when the vehicles are not used exclusively for business purposes.

The derogations will apply until 31 December 2017. The decision extends an earlier decision that expired on 31 December 2014; it will apply retroactively from 1 January 2015.”

Copyright – internationaltaxplaza.info 

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