- Joint and Several Liability for Tax Evasion: In Belgium, entrepreneurs can be held jointly and severally liable for turnover tax debts if they are aware or should be aware of their participation in transactions aimed at tax evasion. This provision is deemed compliant with the VAT Directive and the principle of proportionality.
- Case Against Dranken Van Eetvelde nv: The Belgian tax authorities have pursued Dranken Van Eetvelde nv, a liquor retailer, for unpaid VAT from 2011 due to fraudulent activities, following a history of similar fraud convictions between 2000-2004 and 2012-2014.
- CJEU Judgment Findings: The Court of Justice of the EU ruled that Article 205 of the VAT Directive allows for national laws imposing joint and several liability for VAT payments, provided the entrepreneur can show efforts to prevent fraud. The ruling also clarified that the principle of neutrality is not violated by disregarding the original debtor’s right to deduct, and the principle of ne bis in idem does not apply to penalties for similar offenses across different tax years.
Source Taxence
See also
