Comments on ECJ C-276/24: Joint Liability for VAT in Fraud Cases: Preliminary Question to the ECJ

• Case C-276/24 involves joint liability for VAT in cases of fraud.
• The European Court of Justice (ECJ) addressed a preliminary question on June 6, 2024.
• KONREO is the curator of the bankrupt Czech company FAU, which bought fuel from VERAMI.
• The Czech tax authority conducted an audit and found tax fraud in the supply chain.
• The tax authority denied VERAMI’s right to deduct VAT on the fuel sold to FAU and imposed additional VAT.
• Both FAU and VERAMI were declared insolvent.
• The tax authority held FAU jointly liable for the unpaid VAT by VERAMI and imposed additional VAT on FAU.
• FAU appealed these decisions.
• The referring court questioned the compatibility of this practice with the principle of proportionality and Article 205 of the VAT Directive.
• The court asked the ECJ whether Article 205 of the VAT Directive, in conjunction with the principle of proportionality, allows a national practice that holds the recipient of a taxable supply liable for VAT owed by the supplier, even if the recipient was previously denied the right to deduct input VAT due to participation in tax fraud.

Source: nlfiscaal.nl

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.

---

---