Joint and several liability relating to intra-Community acquisitions

In this article, the authors analyse the European Commission's proposal for measures aimed at combating tax evasion linked to the importation of goods and other cross-border transactions. Part of those proposed measures is a drastic extension of the power of the tax authorities to hold suppliers of goods jointly and severally liable for payment of VAT relating to the subsequent intra-Community acquisitions. The authors specifically discuss the conditions under which the supplier liability is proposed to apply and argue that adoption of the proposed measures would seriously undermine the VAT system.