- Case C-278/24 involves the joint liability of directors of legal entities for VAT.
- The European Court of Justice (ECJ) addressed the case on June 7, 2024.
- PK was the director of the company E Sp. between 2014 and 2017.
- In 2022, the Polish tax authority held PK jointly liable for the company’s VAT arrears from May to August 2017.
- PK appealed the tax authority’s decision to the referring court.
- According to Article 273 of the VAT Directive, member states have discretion within EU law to ensure full VAT collection.
- In Poland, the joint liability of company directors is considered a strict liability under national law.
- The referring court suggested this might conflict with various fundamental rights and the principle of proportionality.
- The only way for PK to avoid liability was to file for bankruptcy, which the referring court argued could violate property rights.
- The referring court posed three preliminary questions to the ECJ regarding this issue.
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.
