- Advocate General Kokott outlines the circumstances in which an employer is responsible for paying VAT in relation to an employee’s fraudulent activity.
- P sp. z oo, a fuel sales company, was found to have issued false VAT invoices in the name of other companies, with the tax authorities attributing the fraud to a gas station manager.
- The judge in Poland has requested clarification on P sp. z oo’s liability for the fraud.
- The first condition for an employer to be held liable is that the recipient of the invoice cannot yet have their input tax deduction refused.
- Additionally, the employee’s issuance of the invoice must be attributed to the employer and
- the employer must not have acted in good faith.
See also
- ECJ Case C-442/22 (P Sp. z o.o.) – AG Opinion – Who is liable to pay VAT where an employee of a VAT taxable person has issued a fraudulent invoice
- Roadtrip through ECJ Cases – Focus on “Liability to pay VAT – VAT shall be payable by any person who enters the VAT on an invoice” (Art. 203)
- Join the Linkedin Group on ECJ VAT Cases, click HERE
- For an overview of ECJ cases per article of the EU VAT Directive, click HERE
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