Between National Application and European Harmonization: A Comparative Legal Analysis of the Margin Scheme for Second-Hand Vehicles in Romanian and European Union Law
Between National Application and European Harmonization: A Comparative Legal Analysis of the Margin Scheme for Second-Hand Vehicles in Romanian and European Union Law

Author(s): Alina-Emilia Ciortea
Subject(s): Law, Constitution, Jurisprudence, EU-Legislation, Comparative Law, Administrative Law
Published by: ADJURIS – International Academic Publisher
Keywords: margin scheme; second-hand cars; European Union; tax; jurisprudence; Directive 2006/112/EC;
Summary/Abstract: This comparative study examines the application of the margin scheme in second-hand car transactions, juxtaposing Romanian national implementation against the broader European Union legal framework. Beginning with common factual scenarios involving cross-border vehicle transactions by natural persons, the research systematically analyzes both Romanian legislation and European directives, identifying areas of convergence and divergence. By contrasting interpretations adopted by Romanian fiscal authorities with European Court of Justice jurisprudence, the study reveals significant differences in implementation approaches. The research demonstrates that while European law establishes that the margin scheme application requires only conditions inherently linked to this VAT regime, Romanian administrative practice has sometimes imposed additional requirements not supported by EU precedent. Through logical and comparative methodological approaches, this analysis contributes to understanding how differential interpretations between Romanian and EU frameworks can lead to competitive distortions and potential double taxation in the second-hand vehicle market. The findings highlight the ongoing challenge of harmonizing national fiscal practices with overarching European legal principles in specialized VAT regimes.

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