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EU Court Rules Tax Offices Can’t Automatically Deregister Firms from VAT for Tax Arrears

  • TSUE ruled that tax offices cannot automatically remove companies from the VAT register for tax arrears.
  • Authorities must first investigate the reasons for the arrears and the behavior of the entrepreneur.
  • The ruling could protect thousands of companies from disproportionate sanctions and irreversible losses.
  • Removal from the VAT register can expose a company to financial losses.
  • Polish law allows removal from the VAT register if a company stops taxable activities or issues false invoices.
  • Companies not submitting VAT declarations for three consecutive months or a quarter can also be removed.
  • The Warsaw Administrative Court emphasized the need to protect taxpayers from hasty and unjustified removal from the VAT register.
  • Reinstatement in the register does not compensate for all negative effects of removal.

Source: ksiegowosc.infor.pl

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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