10.5.2022

Official Journal of the European Union

C 191/6

(Case C-627/21)

(2022/C 191/08)

Language of the case: Romanian

Referring court

Parties to the main proceedings

Appellant: S.H.

Respondents: Administrația Județeană a Finanțelor Publice Sibiu, Direcția Generală Regională a Finanțelor Publice Brașov

Question referred

Can the principle of neutrality of VAT, [recital 30] and Articles 16, 184, 186, 187, 188 and 192 of Directive 112/2006/EC (1) be interpreted as being compatible with national legislation relating to adjustment of the deductible tax in respect of capital goods (in particular Article 305(4)(a) of Legea nr. 227/2015 privind Codul fiscal (Law No 227/2015 establishing the Tax Code) and point 79(14)(b) of the Normele metodologice de aplicare a Legii nr. 227/2015 privind Codul fiscal (Rules for applying Law No 227/2015 establishing the Tax Code), approved by Hotărârea Guvernului nr. 1/2016 (Government Decision No 1/2016), laid down pursuant to Article 305(4)(a) of the Tax Code, in conjunction with Article 316(11)(e) of Law No 227/2015 establishing the Tax Code), and with the practice of the tax administration affecting the initial deductibility of VAT paid in respect of the purchases of capital goods by requiring the taxable person to adjust downwards the deductible VAT on the ground that the tax authority annulled, of its own motion, the taxable person’s registration for VAT purposes for a certain period because of a failure to carry on economic activities in relation to the time during which the capital goods were not the subject of supplies of services or goods during the period between the annulment of the tax authority’s own motion and re-registration for the purposes of VAT?

(1) Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax (OJ 2006 L 347, p. 1, Special edition in Romanian: Chapter 09 Volume 003 P. 7).