Cross-border clarity: Italy and Romania firms support engineering client on Romanian VAT
A complex VAT query turned into an effective collaboration between Studio Pragma in Italy and Teaha Management Consulting in Romania. Together, they helped an Italian engineering company understand its VAT position for a major onshore/offshore pipeline project in Romania.
Guiding a client through Romanian rules
The client needed quick answers on permanent establishment, VAT registration and invoicing, especially with foreign subcontractors providing services in Romania.
Studio Pragma reached out to Teaha through the MGI Worldwide network, bringing in local expertise at a critical moment.
“Having Teaha beside us meant we could guide our client with confidence on a very technical cross-border project.”
— Francesco Bartolucci, Studio Pragma
The value of the MGI Global VAT Specialist Group
This collaboration sits firmly within the expertise of the MGI Worldwide Global VAT Specialist Group, a network of indirect tax experts who advise on cross-border VAT challenges every day.
The group provides a platform for member firms to share knowledge, coordinate on complex multi-country VAT issues and offer clients a seamless service wherever they operate.
In this case, the group’s structure supported the fast connection between Studio Pragma and Teaha, ensuring the client received coordinated and consistent VAT advice across jurisdictions.
Local insight, fast solutions
Teaha reviewed the contract and activities and confirmed no permanent establishment would arise where work in Romania remained under six months.
They clarified when Romanian VAT registration becomes mandatory, explained how foreign subcontractor invoices must be handled, and set out a simple roadmap for VAT registration and ongoing compliance.
“Working with Studio Pragma let us provide a clear, practical solution the client could apply straight away.”
— Mihai Mareș, Teaha Management Consulting
Strong outcomes for the client
Thanks to the joint support, the client could price its bid accurately, avoid unnecessary PE risk, and prepare the correct VAT processes before work began in Romania.
The collaboration showed the strength of the MGI Worldwide network: seamless support, local clarity and trusted advisers working together across borders.
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MGI Worldwide is a leading global accounting network and association with over 8,800 professionals, accountants and tax experts in some 440 locations in almost 100 countries around the world.
