Poland: Tax consequences of issuing fake invoice by employee without knowledge of employer
A CJEU Advocate General opinion concerning tax consequences of issuing fake invoice by employee without knowledge of employer
Tax consequences of issuing fake invoice by employee without knowledge of employer
The Advocate General of the Court of Justice of the European Union on 21 September 2023 issued an opinion that Article 203 of Directive 2006/112/EC on the common system of value added tax (VAT) must be interpreted as meaning that the ostensible issuer of an invoice for fictitious transactions is liable to pay the VAT entered on them only if:
- The recipient of the invoice could not be refused deduction of input tax,
- The issuing of the invoice by a third party is to be attributed to them on account of particular responsibility (or proximity), and
- They did not act in good faith.
Good faith can be ruled out only when the ostensible issuer is at fault. In the case of a taxable person, the culpably deficient selection or supervision of that person’s employees can also constitute such fault.
The case identifying information is: C-442/22
Read a September 2023 report prepared by the KPMG member firm in Poland
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