Romania: value added tax

Clarifications about value added tax have been introduced in relation to expenditure for vehicles that are owned or used by a taxable person, which are not exclusively used to carry out the taxable person’s economic activity and for which the right to deduct the related VAT is limited to 50%. This category comprises only the expenditure directly assigned to a vehicle, such as repairs, maintenance, lubricants, spare parts or fuel used for the functioning of the vehicle.

In addition, the VAT incurred with respect to vehicles used exclusively for the purpose of performing an economic activity may be entirely deducted as long as the taxable person holds the documents required by law and keeps accurate car logs. Taxable persons that apply the 50% limitation on the right to deduct VAT are not required to keep car logs.

Additional clarifications have been introduced in relation to specific cases where vehicles used for the transportation of employees to and from their work place are considered to be used to perform an economic activity.


Tags: , ,

Lascia un Commento

L'indirizzo email non verrà pubblicato. I campi obbligatori sono contrassegnati *


È possibile utilizzare questi tag ed attributi XHTML: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>