ECHR: VAT Assessments in Italmoda Case Are Not Criminal Penalties Under Article 7 ECHR

• The European Court of Human Rights (ECHR) declared the complaint in the Italmoda case against the Netherlands inadmissible.
• The VAT additional tax assessments imposed on Italmoda are not considered a “penalty” under Article 7 of the European Convention on Human Rights.
• The assessments relate to the obligation to pay recalculated tax amounts, not to the imposition of tax fines.
• The amounts, though substantial, are based on standard tax calculations and do not have a punitive purpose.

Source: taxlive.nl

ECJ Case referred to: Flashback on ECJ Cases C-131/13 (Schoenimport “Italmoda” Mariano Previti), C‑163/13 (Turbu.com BV) and C‑164/13 (Turbu.com Mobile Phone’s BV ) – No right for VAT deduction and VAT exemption in case of evasion of VAT committed in the context of a chain of supplies – VATupdate

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.

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