Bucharest, 17 July 2014
BCR Leasing has initiated the court proceedings against the National Fiscal Authorities` decision imposing the company additional VAT liabilities. According to the National Fiscal Authorities, leasing companies were obliged to collect VAT on goods leased under a financial leasing contract, even though part of the goods were not returned as a consequence of the termination of the financial leasing contract.
“ECJ`s judgement confirms once again the importance of compliance with EU law, especially in cases like this, where the state has already changed the national legislation applicable to the dispute, as a result of the infringement proceedings initiated by the European Commission. Today’s judgement clarifies the tax treatment of assets which were not recovered after the termination of the leasing contracts, from the users` fault, thus refuting the national tax bodies` assertions contrary to the European law, and for some cases, even the courts` assertions, despite the obvious result of the infringement procedure”, said Dan Dascălu, D&B David şi Baias Partner, head of the firm`s litigation department.