- The CJEU Advocate General stated that entrepreneurs must pay VAT on empty invoices if they are found to have improperly supervised a dishonest employee.
- The key factor is whether the employer can be attributed good faith or complicity.
- If the employer knew about the employee’s actions and did not intervene, the company may be considered the issuer of the invoice.
- However, the issue of liability for tax in cases where goods are delivered to fraudsters has not been clearly resolved by CJEU judgments.
- In cases of fraud, there is no transfer of the right to dispose of goods and therefore no taxation should occur if the taxpayer has exercised due diligence.
Source MDDP
See also
- ECJ Case C-442/22 (P Sp. z o.o.) – AG Opinion – Who is liable to pay VAT where an employee of a VAT taxable person has issued a fraudulent invoice
- Roadtrip through ECJ Cases – Focus on “Liability to pay VAT – VAT shall be payable by any person who enters the VAT on an invoice” (Art. 203)
- Join the Linkedin Group on ECJ VAT Cases, click HERE
- For an overview of ECJ cases per article of the EU VAT Directive, click HERE
Latest Posts in "European Union"
- EU Parliament Approves CBAM Reforms: New 50-Ton Threshold, Delayed Certificate Purchases to 2027
- ViDA: Transforming EU VAT with Harmonized e-Invoicing and Real-Time Reporting
- EU Court Ruling on Arcomet: Transfer Pricing Adjustments Pose VAT Risks for Companies
- Italian Tax Authorities Remove Non-EU Companies from VIES for Failing New VAT Guarantee Requirements
- Comments on ECJ C-121/24: Non-payment of declared VAT does not constitute VAT fraud
