- EU Ruling on Liability: The Court of Justice of the EU confirmed that the Dutch VAT liability regime for directors is compliant with EU law.
- Burden of Proof: Directors must demonstrate they are not responsible for failing to report inability to pay VAT to avoid joint liability.
- Case Background: KL, a director of a company that went bankrupt, faced liability for unpaid VAT after failing to notify inability to pay during certain periods.
- Court Findings: KL successfully proved lack of mismanagement for one period but could not contest liability for earlier periods due to lack of valid notifications.
- Implications for Directors: The ruling allows directors to present various circumstances as defense against liability, not limited to cases of force majeure.
Sources
See also
- Join the Linkedin Group on ECJ VAT Cases, click HERE
- VATupdate.com – Your FREE source of information on ECJ VAT Cases
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