Comments on Opinion in ECJ case C-331/23: Third Party Tax Liability and VAT Fraud in Belgium – A Legal Analysis

• Advocate General Kokott concludes that it is against EU law for Van Eetvelde to be held liable for tax debts of a third party
• Liability for tax debts of a third party is only possible if the taxpayer and their tax debt are known
• Dranken Van Eetvelde NV operates a retail business in beverages
• Belgian Tax Authorities found that Van Eetvelde issued false invoices for the delivery of drinks to individuals, while they were actually delivered to businesses who resold them ‘under the table’
• Various fines and penalties were imposed on Van Eetvelde
• Belgian law holds Van Eetvelde jointly liable for tax debts of an unknown third party due to involvement in fraud
• Belgian court raised questions regarding this case
• Advocate General Kokott states that holding Van Eetvelde liable for tax debts of a third party is against EU law
• Belgium is also in violation of EU law by determining the VAT on a false invoice related to VAT fraud by a third party as a joint debt
• The lack of correction possibility and the additional 200% fine are also against EU law

Source: taxlive.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.

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