The Romanian Court of Appeal has referred a question to the European Court of Justice (ECJ) in respect of a supply of immovable property by a vendor who was later reclassified as a taxable person.

The questions relate to the taxable amount of the transaction. The question is whether Articles 73 and 78 of the EU VAT Directive should be interpreted to mean that the taxable amount for VAT purposes is the sale price of the property as decided by the parties to the transaction less the relevant rate of VAT, or alternatively whether the sale price of the property is the taxable amount for VAT purposes. Guidance from the ECJ could therefore provide clarity on the VAT consequences in respect of the property transaction.