Comments on ECJ C-121/24: Liability for VAT debt under conditions in the event of bankruptcy of the debtor

• The Court of Justice of the European Union ruled that Bulgaria did not violate EU law by holding Vaniz EOOD liable for the unpaid VAT of Stars International EOOD, despite Stars no longer existing.
• The ruling confirmed that Vaniz’s awareness or reasonable suspicion that Stars would not pay the declared VAT was sufficient grounds for liability, as this knowledge impacted Vaniz’s right to deduct VAT.
• The court emphasized that the dissolution of Stars does not alter Vaniz’s responsibility for the VAT, reinforcing the principle that taxpayers must ensure compliance when exercising their VAT deduction rights.

Source Taxlive

See also

ECJ C-121/24 (Vaniz) – Judgment – Joint VAT liability valid post-debtor dissolution if third-party knowledge exists – VATupdate

VAT Liability and Deduction in the ECJ: Contrasting C-227/21 (HA.EN.) and Vaniz (C-121/24) on Buyer Responsibility and Supplier Insolvency – VATupdate

ECJ C-227/21 (HA.EN.) – Judgment – No Denial of input VAT if the seller would not pay output VAT – VATupdate

---

• Join the Linkedin Group on ECJ/CJEU/General Court VAT Cases, click HERE
• VATupdate.com – Your FREE source of information on ECJ VAT Cases
• Podcasts & briefing documents: VAT concepts explained through ECJ/CJEU cases on Spotify

---

 

---

---