- Impact of Falsified Invoices: The issuance of blank or falsified invoices, particularly by employees without employer consent, can lead to significant VAT liabilities for both the issuer and the taxpayer listed on the invoice. Recent judgments clarify that while employers may be exempt from VAT obligations if due diligence is exercised, they remain liable if they fail to adequately oversee employee actions.
- Right to Deduct VAT: Buyers cannot deduct input VAT from invoices that are deemed “empty” or that document sham transactions. However, if a buyer is unaware of the fraudulent nature of the transaction and exercised due diligence, they may retain their right to deduct VAT.
- Legal Precedents and Responsibilities: The CJEU and Polish courts emphasize the need for employers to demonstrate due diligence in controlling their employees’ invoicing practices. In cases where employees issue fraudulent invoices, the burden of VAT liability may shift to the employee if the employer can show they maintained adequate oversight. Clear internal policies are essential to mitigate risks associated with such fraudulent activities.
Source: ksiegowosc.infor.pl
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.
