- The CJEU ruling in case C-442/22 clarified that employers may be liable for VAT from “blank” invoices issued by employees if they fail to exercise due diligence in supervising their activities, emphasizing the need for reasonable control measures to prevent or detect tax fraud.
- Employers should establish clear procedures and regulations around invoice issuance, conduct audits of these processes, and maintain documentation that demonstrates compliance, which can serve as evidence of due diligence in tax matters.
- Additional recommended actions include mandatory employee training on VAT invoicing responsibilities, implementation of IT tools for monitoring invoicing behavior, and creating whistleblowing systems to encourage reporting of irregularities, all tailored to the specific context and needs of the business.
Source Prawo
See also
- C-442/22 (P Sp. z o.o.) – Judgment – Employee who issued empty invoice is responsible to report them
- Roadtrip through ECJ Cases – Liability to pay VAT – VAT shall be payable by any person who enters the VAT on an invoice (Art. 203)
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