Comments on ECJ Case C‑164/24: Proportionality in VAT Deregistration – Limits National Tax Authorities’ Powers

• CJEU issued a judgment on VAT deregistration focusing on proportionality and limits of national tax authorities’ powers
• Case involved a Bulgarian company removed from VAT register for failing to meet VAT obligations
• Bulgarian court questioned if removal without detailed assessment was compatible with EU law
• CJEU ruled automatic removal without proper analysis is not compatible with VAT Directive
• Decision emphasizes need for proportional, fair, and procedurally sound enforcement
• Authorities must consider nature and seriousness of non-compliance
• No general EU law allows deregistration for non-compliance
• Authorities must assess conduct on a case-by-case basis
• Legal certainty is essential to avoid sudden deregistration impacts
• Ruling reinforces proportionality in national legal systems

Source: marosavat.com

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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