Reff & Associates, the Romanian member of Deloitte Legal, has obtained a final court decision confirming that the delivery of molds falls under the same VAT tax regime as the supply of the goods produced with the molds, even if they are purchased by the supplier and held by them after their use in the production process.
According to the court’s decision, the delivery of molds is part of the supply of goods to which it is linked, following the same VAT treatment as the supply of products made with the molds. As such, it is not a separate transaction as the tax inspectorates had argued.
"The decision achieved by Reff & Associates is remarkable for the Romanian market,” said Partner Andreea Artenie, also Coordinator of the Tax Litigation Practice. “On the one hand, the decision invalidates a constant view expressed by tax inspectorates in such cases and, on the other hand, establishes that the fiscal treatment applied to this situation in Romania is different from other EU Member States. For these reasons, our success becomes a milestone that marks a change in approach in the practice of tax authorities, bringing on a necessary and long-awaited industry clarification."
The Reff & Associates team included Partner Andreea Artenie, Managing Associate Ionut Iablonschi, and Senior Associate Adelina Somoiag.