- The European Court of Justice ruled that under Article 205 of the VAT Directive, member states can implement measures for more effective VAT collection, including holding a person jointly liable other than the primary debtor, respecting legal certainty and proportionality. The case involved the Czech company FAU s.r.o., which was denied VAT deduction rights due to involvement in tax fraud. The court addressed whether simultaneous joint liability and denial of VAT deduction for a recipient aware of fraud is compatible with the VAT Directive and proportionality principle.
Source: taxheaven.gr
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.
