- Court of Justice of the European Union delivered judgment C-341/22
- Feudi on 7 March 2024
- Italian VAT anti-abuse legislation declared incompatible with EU VAT law
- Case provides schooling on basics of EU VAT law, including fiscal neutrality and proportionality
- Advocate General’s opinion disagreed with Court’s decision
- Italian law classified companies as ‘shell’ or ‘non-operational’ based on financial thresholds
- Companies denied VAT refunds if classified as non-operational for three consecutive years
- Rebuttal opportunity for companies to argue low revenue due to objective reasons
- Feudi challenged Italian law after being denied input VAT deductions
- Court reiterated broad definition of ‘taxable person’ in EU VAT law
- Right to deduct input VAT can only be restricted in limited circumstances, fraud being one
- Court cited judgments confirming right to deduct VAT available under certain conditions
Source: internationaltaxreview.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
