TEAC Overturns Disproportionate VAT Penalty in Landmark EU Law Decision

TEAC annulled IVA penalty for violating EU law
Penalty was fixed at 10% of undeclared amount without considering economic harm
Penalty related to omission in VAT self-assessment for Q1 2018
Entity used reverse charge mechanism but failed to declare VAT
AEAT imposed penalty based on fixed percentage for serious tax offense
Entity argued omission was unintentional and did not harm tax revenue
TEAC found penalty disproportionate as no economic harm or fraud occurred
Ruling based on principle of proportionality and previous Supreme Court decision of July 25, 2023

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.