The companies Tulica and Plavosin had concluded several agreements in relation to supplies of immovable properties. The agreements concluded in relation to these supplies did not mention VAT. The Romanian Tax office had assessed the suppliers for VAT on top of the price agreed and paid by the customers.
According to the European Court of Justice the VAT Directive, and in particular articles 73 and 78, have to be explained that the agreed purchase price has to be regarded as to include VAT if the parties have nothing agreed about the VAT and this VAT cannot be recovered from the purchaser. In this case the actual VAT amount payable by the suppliers will be lower.
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