VAT fraud: 15-year statute of limitations compatible with EU law

Brussels – The provision for an absolute 15-year statute of limitations for serious VAT fraud is compatible with European Union law, provided that it does not give rise to a systemic risk of impunity. This clarification comes from the Court of Justice of the European Union in its judgment of 15 October 2026, Case C-321/25.

 “The duration is, in principle, considered reasonable even for proceedings spanning three levels of jurisdiction,” said Alfredo Accolla, a board member of the Pension Fund for Accountants and Chartered Accountants. “Delays or changes to the panel of judges in a single trial are not, in themselves, sufficient to demonstrate a systemic risk of impunity,” he observed.

 “The Court of Justice of the European Union has also clarified that Member States may set higher maximum prison sentences for participation in a criminal organisation than those provided for the offences that the organisation aims to commit, in accordance with the principle of proportionality,” he concluded. 

In any event, sanctions must comply with the principle of proportionality and ensure the effective protection of the European Union’s financial interests.