CJEU – Recent Developments in Value Added Tax 2021

S. 341. Introduction

VAT offences have effects not only on the national budget, but also on the EU budget, since a certain rate of VAT of each Member State is one type to the EU’s own resources. Therefore, it is not surprising that VAT was the first tax to be broadly harmonised at the EU level. Moreover, we regularly face, particularly in connection with organised crime, cross-border cases of VAT evasion. This makes the criminal prosecution of VAT evasion more difficult, at a legal and a practical level. Several questions arise: What are the demands to protect VAT and how effective is the protection of VAT, which is a national tax that is raised by the national tax authorities? It is also in the EU’s interest that VAT is raised effectively to protect the EU’s financial interests, but, how should this protection take place? Which national legal systems protect foreign VAT? Which prosecution authorities are competent to prosecute and who coordinates the prosecution in cross-border cases? At first glance, it is no wonder that the sanctioning of VAT offences is a European topic, especially as VAT law is harmonised within the EU. However, if we look into the past, we can see that it is not se...