ECJ: VAT Directive allows for national regulations to require timely VAT registration for small businesses to benefit from VAT exemption

Legafact EOOD, a Bulgarian company, failed to register for VAT on time and incurred a tax debt
The national regulation imposing a tax debt for late VAT registration is not in violation of the VAT Directive
The Court of Justice of the European Union (CJEU) clarified that the VAT Directive allows for national regulations to require timely VAT registration for small businesses to benefit from VAT exemption
The CJEU also stated that a national regulation imposing a tax debt for failure to timely register for VAT must be effective in preventing violations of harmonized VAT regulations and proportional to the offense

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.