The authorities also imposed a joint and several VAT liability, holding the administrator responsible for unpaid VAT from the supplier. A preliminary ruling was requested to assess whether this practice was compatible with EU VAT law, particularly Article 205 of Council Directive 2006/112/EC, and the principle of proportionality. ECJ ruling: The ECJ held that: This decision confirms that Member States may hold recipients liable for VAT due on fraudulent transactions without breaching EU law, provided the measures are proportionate. Source: europa.eu