AJFP Caraş-Severin and DGRFP Timişoara

In AJFP Caraş-Severin and DGRFP Timişoara  (Case C-716/18) (6 February) Advocate General (AG) Kokott concluded that a Romanian taxpayer’s income from his letting of property had to be included in his annual turnover when determining whether he was required to register for VAT.

The appellant worked in various capacities including as a university professor accountant tax consultant lawyer and insolvency practitioner. He also received some income from the letting of property. His dispute with the Romanian tax authorities concerned the ‘small enterprise exemption’ which provides that taxpayers whose turnover is under a set threshold (in Romania EUR 65 000) are exempted from VAT. The key question was whether when calculating his turnover for this purpose the appellant needed to include the income from the letting of a property he owned (and which was also the seat of his insolvency practitioner’s...