Additional tax liability in value added tax – preventive or oppressive instrument? The commentary of the Judgment of the Court of Justice of the European Union of April 15, 2021 in the case of Grupa Warzywna Sp. z o.o. v. Director of the Tax Administration Chamber in Wrocław

Abstract

The commentary is devoted to an analysis of the CJEU’s judgment of April 15, 2021, C-935/19. It contains criticism of the position of the Polish administrative courts, which unjustifiably assumed that the instrument of additional tax liability in the goods and services tax should be applied by the authorities unreflectively. It approves of the CJEU’s position entrenching the practice of considering each case individually. The judgement also points to the problem of the failure of administrative authorities and courts to apply a pro-EU interpretation in protecting a taxpayer acting in good faith. More broadly, it draws attention to the deficit of norms protecting the taxpayer’s rights in the Polish legal system. The article also addresses the issue of the compatibility of the additional tax liability with EU law.