CJEU Protects Luxembourg Directors’ Right to Challenge Company VAT Assessments

• The CJEU held in QJ (C‑158/25) that Luxembourg company directors/managers facing personal VAT guarantee liability must have an effective remedy under Article 47 of the EU Charter.
• They may incidentally challenge the factual and legal findings of the company’s final VAT assessment insofar as those findings are used to establish their personal joint and several liability.
• The company’s VAT assessment cannot be treated as irrebuttable against the director/manager, even though the company and the individual are legally distinct.
• The Court did not require the tax authority to include directors in the original VAT assessment, but directors must have a real chance to defend themselves in the guarantee call procedure and/or before the reviewing court.
• The decision may require Luxembourg to revise its guarantee call system and could affect broader rules on personal tax liability beyond VAT.

Source: bakermckenzie.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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