The Niculeasa Law Firm has successfully represented Laminorul Braila in a VAT adjustment case before the Romanian High Court of Cassation and Justice (ICCJ).
The firm reported that the ICCJ admitted its request to consider whether Article 90 of the EU VAT Directive took precedence over national law, on VAT adjustment matters. The court confirmed that Article 90 is directly applicable and that Romania's Fiscal Code improperly regulates VAT adjustments. As a result, Laminorul Braila is entitled to a VAT adjustment arising from unfulfilled contractual obligations.
The ICCJ agreed with the EU's Court of Justice interpretation that member states cannot impose additional conditions limiting the applicability of Article 90 – and the reduction of the taxable amount – beyond those strictly necessary for confirming lack or impossibility of payment. Any other formal requirements are deemed to exceed EU law.
Established in 1924, Laminorul Braila is a Romanian producer of metal laminates and related products.
The Niculeasa team included Managing Partner Madalin Niculeasa and Co-Partner Andreea Gheorghisan.