- The Court of Justice of the European Union has ruled that if an employee of a VAT subject issues a false invoice using the identity of their employer without their knowledge or consent, the employee should be considered as the person indicating the VAT, unless the employer can prove that they acted with reasonable diligence to control the employee’s conduct.
- The case in question involves false invoices issued by an employee using their employer’s data without their knowledge or consent.
- The court clarifies that the VAT indicated on an invoice is owed by the issuer, even if there is no actual taxable transaction.
- The purpose of Article 203 of the VAT directive is to eliminate the risk of tax revenue loss that could result from the right to deduction provided by the directive.
- The issuer of an invoice indicating the VAT amount is liable for that amount regardless of any wrongdoing, as long as there is a risk of tax revenue loss.
- The wording of Article 203 does not specify who the expression “anyone indicating such tax” refers to in the case of an apparent issuer of the invoice who has had their identification data usurped by an employee for the purpose of VAT fraud.
Source: ipsoa.it
See also
- C-442/22 (P Sp. z o.o.) – Judgment – Employee who issued empty invoice is responsible to report them
- Roadtrip through ECJ Cases – 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
- VATupdate.com – Your FREE source of information on ECJ VAT Cases
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
