- The European Court of Justice ruled that EU law allows Member States to impose joint VAT liability on third parties if the original debtor is dissolved.
- Such liability is permitted if the third party knew or should have known that the VAT would not be paid.
- The ruling confirms that national laws can require recipients of goods or services to pay unpaid VAT in certain circumstances.
- This mechanism is allowed to protect tax revenue, provided the knowledge requirement is met.
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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