- Case C-276/24 involves joint liability for VAT in cases of fraud.
- The European Court of Justice (ECJ) addressed a preliminary question on June 6, 2024.
- KONREO is the curator of the bankrupt Czech company FAU, which bought fuel from VERAMI.
- The Czech tax authority conducted an audit and found tax fraud in the supply chain.
- The tax authority denied VERAMI’s right to deduct VAT on the fuel sold to FAU and imposed additional VAT.
- Both FAU and VERAMI were declared insolvent.
- The tax authority held FAU jointly liable for the unpaid VAT by VERAMI and imposed additional VAT on FAU.
- FAU appealed these decisions.
- The referring court questioned the compatibility of this practice with the principle of proportionality and Article 205 of the VAT Directive.
- The court asked the ECJ whether Article 205 of the VAT Directive, in conjunction with the principle of proportionality, allows a national practice that holds the recipient of a taxable supply liable for VAT owed by the supplier, even if the recipient was previously denied the right to deduct input VAT due to participation in tax fraud.
Source: nlfiscaal.nl
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.
