Joint and several VAT liability – is it compliant with EU law?
(Direktor na Direktsia „Obzhalvane i danachno-osiguritelna praktika“, C-1/21, opinion, 2.06.2022)

Mr. MC served as a board member of a Bulgarian company.

A tax decision was issued against the company. Pursuant to the decision, the company was obliged to pay VAT with interest. The enforcement of these amounts turned out to be ineffective. Some circumstances indicate that MC in bad faith led to depletion of the company’s assets, due to which the company did not pay the tax. As a result, the tax authority held MC liable for the tax arrears plus interest.

Advocate General in on opinion will answer whether the rules establishing such liability are compliant with the Convention drawn up on the basis of Article K.3 of the Treaty on European Union, on the protection of the European Communities’ financial interests and with the VAT directive.

The Advocate General will also answer whether such rules are admissible in relation to liability for interest on unpaid VAT where the non-payment of VAT is not due to the conduct of the person liable.