ECJ Upholds Czech Joint VAT Liability in Fuel Fraud Case, Validates EU Law Compliance

• ECJ upheld Czech joint VAT liability in a fuel fraud case.
• Case involved a Czech company denied VAT deduction due to supply chain fraud.
• Czech tax authorities imposed joint VAT liability on the insolvency administrator.
• Preliminary ruling assessed compatibility with EU VAT law and proportionality.
• ECJ ruled Article 205 allows joint VAT liability even if VAT deduction is denied.
• Liability is valid if the recipient knew or should have known of the fraud.
• Member States can hold recipients liable for VAT on fraudulent transactions if measures are proportionate.

Source: globalvatcompliance.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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