Comments on AG Opinion C-331/23: Belgium’s VAT Fraud Penalties: AG Criticizes Disproportionate Approach and Violation of European Law

• Advocate General criticizes Belgium’s approach to VAT fraud penalties and joint liability of taxpayers
• 200% fines considered disproportionate and in violation of European principles
• Belgian VAT law allows joint liability for VAT debts of third parties to combat fraud
• Case of Dranken Van Eetvelde NV involved VAT fraud through false invoices for drinks
• Company held jointly liable for buyers’ unpaid VAT, leading to tax reassessment and 200% fine
• Court of Justice of the European Union asked to assess compliance with European law
• Questions raised on proportionality, neutrality, double punishment, and cumulative sanctions
• Case questions whether Belgium’s joint liability rule and heavy fines in VAT fraud are in line with European law.

Source: VATconsult

See also

• C-331/23 (Dranken Van Eetvelde) – AG Opinion – Ne Bis In Idem principle applies for VAT liabilities

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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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