Primjena Direktive o zajedničkom sustavu poreza na dodatnu vrijednost 2006/112/EZ u poreznim postupcima u Republici Hrvatskoj

The successful functioning of the European Union’s single market, particularly regarding the unrestricted movement of goods, services, capital, and workers, largely depends on a well-functioning tax system within the EU. Value Added Tax (VAT) holds significant fiscal importance for both the EU and its member states. In 1993, the removal of customs controls within the EU led to an increase in VAT-related fraud, prompting both the EU and its member states to take substantial measures to combat these issues. The Republic of Croatia is also faced with the misuse of value added tax regulations and is implementing strict measures to address these problems. A critical question arises concerning the liability of entrepreneurs and business partners of legal entities involved in tax fraud. Specifically, when can it be conclusively determined that the other party in a transaction with a legal entity that failed to pay tax „knew or should have known“ about the non-payment, indicating tax fraud? This paper aims to clarify the conditions under which the other contracting party of a legal entity suspected of VAT abuse may be held accountable for such violations.