- EU Ruling on Liability: The Court of Justice of the EU confirmed that the Dutch VAT liability regime for directors is compliant with EU law.
- Burden of Proof: Directors must demonstrate they are not responsible for failing to report inability to pay VAT to avoid joint liability.
- Case Background: KL, a director of a company that went bankrupt, faced liability for unpaid VAT after failing to notify inability to pay during certain periods.
- Court Findings: KL successfully proved lack of mismanagement for one period but could not contest liability for earlier periods due to lack of valid notifications.
- Implications for Directors: The ruling allows directors to present various circumstances as defense against liability, not limited to cases of force majeure.
Sources
See also
- Join the Linkedin Group on ECJ VAT Cases, click HERE
- VATupdate.com – Your FREE source of information on ECJ VAT Cases
Latest Posts in "European Union"
- Transfer Pricing, VAT and Transactions Between Related Entities: Key Principles from CJEU Case Law (Stellantis Portugal, C‑603/24)
- EU ViDA Implementation Strategy: Six Implementing Acts Shaping DRR, VIES and OSS Roll-Out (2027–2030)
- Comments on ECJ C-603/24 (Stellantis Portugal) – Transfer pricing and VAT: Court confirms in Stellantis that not every true-up constitutes a service
- Agenda of the ECJ/General Court VAT cases – 3 Judgments till June 25, 2026
- EGC VAT Case T-231/26 (Agenzia delle Entrate Direzione Provinciale Genoval) – Questions – VAT deductibility of general expenses for auctioneers under margin scheme
