The reduction from 100% to 30% of the penalty for undue VAT deduction is considered legitimate. In a recent judgment on September 12, 2023, the Italian Supreme Court established a precedent that goes beyond a previous ruling from September 28, 2018, which merely deferred to lower courts to determine the penalty’s applicability and proportionality. The case involved circular energy sales within the same group of companies, where they bought and sold electricity at the same price, resulting in no actual tax loss. The tax authority contested the undue deduction penalty, which is now 90%, and the court upheld the reduction to 30%, emphasizing the principle of proportionality in VAT sanctions.
Source: eutekne.info
Latest Posts in "Italy"
- Applicable VAT Rate for Food Supplements Classified Under NC Code 21069092 in Italy
- Italy Updates VAT Exemption Rules for SMEs Operating Across EU Borders, Streamlining Compliance
- 10% VAT Rate Applies to Food Supplements Classified Under Code 210690, Confirms Tax Agency
- Protective Shields Against Radiation Not Eligible for 5% VAT, Must Apply Standard 22% Rate
- VAT Treatment of Modular Prefabricated Houses Supplied by EU Sellers to Italian Private Consumers
