C-122/23 Legafact: Small Business VAT Registration Requirements and Penalties

CJEU judgment on Bulgarian referral regarding VAT registration for small businesses
Legafact, a business consultancy, issued invoices before applying for VAT registration
Tax authorities considered Legafact liable for tax on supplies made before registration
Administrative Court found tax adjustment notice issued unlawfully and penalty disproportionate
Referring Court questions if national legislation on VAT exemption for small businesses is in line with VAT Directive

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.