CJEU - Recent Developments in Value Added Tax 2022

1. Introduction

VAT fraud is as old as the VAT system itself. The amounts lost by the EU and Member States reach billions of euros. The evolution of the digital economy makes it easier to commit VAT fraud as, with the development of electronic tools, fraudsters can quickly operate before VAT administrations notice it. This situation is reinforced by the lack of an adapted legal framework. One of the main reasons for the important development of VAT fraud is indeed the VAT system itself which has allowed the fraudsters to conduct cross-border schemes impacting the economic resources of the Member States.

In order to tackle VAT fraud, the EU has developed some preventive tools through the years aiming at identifying the fraudulent behaviors as soon as possible. Member States also implemented national repressive measures to limit the economic impact of VAT fraud mostly based on Art. 273 of the VAT Directive. It provides that Member States may impose obligations that they deem necessary to prevent fraud