European Commission Adopts Proposal for Council Decision on Romanian Input VAT Deduction for Vehicle Expenditures

The European Commission (EC) April 8 adopted Proposed Council Implementing Decision No. COM (2024) 154, authorizing Romania to apply special measures on the common system of VAT regarding input VAT deductions on expenditures related to motor vehicles. Romania requested an extension of the derogation from Article 168 and Article 26(1)(a) of the VAT Directive for specific purposes, including to continue to restrict input VAT deduction rights on motor vehicle-related expenditures that are not used exclusively for business purposes. The proposed decision includes measures that would: 1) authorize Romania to deduct 50 percent VAT on motorized road vehicle purchases, acquisitions, imports, ...