Comments on ECJ C-709/22 (Syndyk – AG Opinion): Bankruptcy, VAT and creditors

Poland introduced a “split payment” mechanism where the VAT amount of a supply is paid into a special “VAT account” and cannot be freely disposed of by the taxpayer.
The Advocate General has determined that this mechanism complies with the VAT Directive, the Implementing Decision establishing the “split payment” measure, the Charter of Fundamental Rights, and the general principles of Union law.
The mechanism serves to eliminate VAT fraud and does not violate provisions of the VAT Directive, such as Article 206. It also aligns with the order of satisfaction in bankruptcy proceedings and is compatible with the Charter of Fundamental Rights. There is no indication of a violation of other principles of Union law.