EU Court: Employees Liable for Fraudulent VAT Invoices Unless Employer Negligent in Supervision

The Court of Justice of the European Union ruled that employees who issue fraudulent VAT invoices under their employer’s name are personally liable for the tax, unless the employer failed to supervise them.
Previously, Polish law often held companies responsible for VAT on fake invoices created by rogue employees, even if the company was unaware.
The new ruling clarifies that liability falls on the employee unless the employer was negligent in supervising the employee.
The decision aims to prevent penalizing good-faith employers and aligns with the objective of combating fraud.
Employers can still be held liable if they failed to exercise reasonable supervision over their employees.

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.