Court of Justice rules on director liability for unpaid VAT

The Court of Justice has issued a ruling regarding the joint and several liability of company directors for unpaid VAT debts. The decision addresses the extent to which a director can contest tax assessments that have been definitively established against their company.

Under Belgian law, directors can be held personally liable for unpaid VAT if the failure is due to a fault, such as leaving VAT unpaid for three months or two quarters within a single year. Similar provisions exist in Luxembourg law, where managing directors and those with de facto control are held liable if they fail to meet legal obligations or use available financial resources to settle VAT debts.