- Ruling Against Bulgaria’s Assessment Criteria: The Court of Justice of the European Union (CJEU) determined that Bulgaria’s practice of evaluating applications for the suspension of the sealing of business premises solely based on the potential for serious or irreparable damage is contrary to EU law.
- Context of the Case: The ruling arose from an inspection of Ati-19 EOOD by Bulgarian tax authorities, which revealed discrepancies in tax receipts and turnover reports, leading to a €500 fine and a 14-day sealing of the business premises. Ati-19 contested this decision, prompting a Bulgarian court to seek clarification on compliance with EU law.
- Importance of Judicial Review: The CJEU emphasized that the Bulgarian courts must have the opportunity to assess the legality and justification of the suspension application based on all relevant arguments, rather than being limited to the enforcement’s potential damages, ensuring adherence to Article 47 of the Charter of Fundamental Rights, which guarantees the right to an effective remedy.
Source Taxlive
See also
- ECJ C-605/23 (Ati-19” EOOD) – Judgment – Member State laws cannot limit judicial review of penalties – VATupdate
- Briefing Document & Podcast C-605/23 (‘Ati-19’ EOOD): EU Law and Effective Remedies in VAT Enforcement – VATupdate
- Background and Legal Question: The CJEU addressed a case involving the Bulgarian company Ati-19, which faced fines and a temporary closure for failing to issue tax receipts. The court examined the limitations of judicial review in applications for suspending coercive administrative measures under Bulgarian law, which only considered potential damages without assessing the legality of the measures themselves.
- CJEU Ruling: The court ruled that Article 47 of the Charter of Fundamental Rights mandates effective judicial protection, precluding national legislation that limits judicial review to damage assessments. It emphasized that judges must have the authority to evaluate the legality of administrative measures and that national laws should be interpreted in a way that aligns with EU law.
- Impact on Taxpayer Rights: The Ati-19 judgment enhances taxpayer rights by requiring that judicial reviews consider both the legality of coercive measures and potential damages. This ruling underscores the necessity for effective legal protection, ensuring that substantive legal reviews are genuinely available in administrative proceedings.
Source BTW jurisprudentie
- Join the Linkedin Group on ECJ/CJEU/General Court VAT Cases, click HERE
- VATupdate.com – Your FREE source of information on ECJ VAT Cases
