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.

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