- The ECJ was asked to rule on whether Bulgarian law allowing joint VAT liability for a customer when a supplier becomes insolvent is compatible with EU VAT law.
- Vaniz, a Bulgarian company, was held liable for unpaid VAT after its supplier, Stars International, became insolvent and ceased to exist.
- Bulgarian law permits joint liability if the recipient knew or should have known the supplier would not pay VAT.
- Vaniz argued that EU law should prevent retrospective joint liability when the supplier no longer exists.
- The case centers on the interpretation of Article 205 of the EU VAT Directive, which allows Member States to extend VAT liability to others in certain circumstances, subject to legal certainty and proportionality.
Source: meridianglobalservices.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.
Latest Posts in "European Union"
- EN 16931 Update: Making EU e-Invoicing ViDA-Ready for B2B and Cross-Border Compliance
- Is VAT Payable on Remuneration for Unauthorized Use of Copyright? EU Court Clarifies
- Ensuring Correct VAT Treatment for Supply and Installation Agreements Across the EU
- VAT Treatment of Anonymous Discount Vouchers: Timing and Proof Requirements in Retail Sales
- European Court: VAT Applies to Damages for Unauthorised Use of Copyrighted Works
