- CJEU Ruling on VAT Deletion: The Court of Justice of the European Union (CJEU) ruled on April 3, 2025, that national laws allowing for the automatic deletion of a taxpayer from the VAT register due to non-compliance must consider the nature of the infringements and the taxpayer’s conduct, emphasizing the principles of legal certainty and proportionality.
- Consequences of Deletion: The deletion of a taxpayer from the VAT register can have severe repercussions for both the taxpayer and their customers, leading to ongoing uncertainty about tax obligations and rights, which contravenes the principle of legal certainty.
- Guidance for Tax Authorities: This ruling serves as a directive for tax authorities, such as those in Poland, to ensure that any decisions regarding taxpayer deletion from the VAT register are based on thorough, objective assessments and justifications, rather than automatic or superficial evaluations.
Source MDDP
See also
Exclusion from the VAT register is not allowed without a proportionality test
- The CJEU addressed the case of Cityland EOOD, which faced VAT deregistration in Bulgaria for minor payment delays, questioning whether minor violations justify automatic removal from the VAT register.
- The Court emphasized that VAT deregistration must be proportionate and justified, requiring tax authorities to assess the seriousness and context of violations before taking such action.
- The ruling establishes that deregistration should not be automatic for minor errors, ensuring that entrepreneurs receive fair treatment and protection under EU law.
Other BTW jurisprudentie
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