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European Commission warns Romania on VAT recovery

  • VAT
  • 12 July 2014 | Richard Asquith

European Commission warns Romania on VAT recovery

The European Commission has formally requested Romania to improve its VAT recovery process of face sanction.

The reasoned opinion from the EC, the step before proceedings at the European Court of Justice (ECJ), states that the time to repay claims under the EU 8th VAT Directive take in excess of six months.  This is far in excess of the average time taken by other member states.

Romania must now reply to the EC or face a referral to the ECJ after 60 days.

Reclaiming VAT under 8th Directive

EU companies may reclaim VAT incurred in another EU member state under the guidelines set by the 8th Directive.  This dictates the administration and requirement that governments may impose on claimants, which includes speedy repayments of justifiable claims.  In 2010, the EU VAT Package simplified the process enormously by enabling companies.

Non-EU companies looking to recover VAT suffered in an EU state may instead file a reclaim through the 13th Directive.


VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He is part of the European leadership team which this year won International Tax Review's Tax Technology Firm of the Year. Richard qualified as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.