- The CJEU Advocate General stated that entrepreneurs must pay VAT on empty invoices if they are found to have improperly supervised a dishonest employee.
- The key factor is whether the employer can be attributed good faith or complicity.
- If the employer knew about the employee’s actions and did not intervene, the company may be considered the issuer of the invoice.
- However, the issue of liability for tax in cases where goods are delivered to fraudsters has not been clearly resolved by CJEU judgments.
- In cases of fraud, there is no transfer of the right to dispose of goods and therefore no taxation should occur if the taxpayer has exercised due diligence.
Source MDDP
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)
