Beach and bar management EOOD v. National Revenue Agency (Bulgaria), Case C-733/23, CJEU (First Chamber), 3 July 2025

The Court of Justice has deemed national legislation incompatible with Union law when it allows for both a pecuniary penalty and a coercive measure (sealing of premises with prohibition of access) to be imposed for the same VAT violation, through distinct and uncoordinated proceedings. Furthermore, legislation that imposes high minimum penalties, without the possibility for the judge to adapt them to the actual seriousness of the violation, is also contrary to Union principles.

Art. 50 Charter of Fundamental Rights of the European Union
Art. 49(3) Charter of Fundamental Rights of the European Union
Art. 325 TFUE

1. It constitutes a breach of the ne bis in idem principle (Art. 50 of the Charter of Fundamental Rights of the EU) to impose both a financial penalty and a coercive administrative measure of substantially criminal nature, such as sealing off the premises and prohibiting access, for the same tax-related conduct, in the absence of procedural coordination.
 

2. Article 273 of Directive 2006/112 and Article 49(3) of the Charter of Fundamental Rights preclude national legislation which provides for, as an administrative penalty, a financial measure of a high amount without the court hearing a challenge to that measure having the procedural possibility of imposing an amount less than that provided for by that legislation or another more lenient type of penalty.