Comments on ECJ C-341/22: Italy wrongly imposes a turnover requirement for VAT tax liability

• AG Collins believes that Italy’s denial of VAT taxable status to Vigna Ottieri due to low turnover is against EU law.
• Vigna Ottieri has invested in production facilities and equipment for wine production in Campania since 1996.
• In 2005, the company was leased to Feudi di San Gregorio Aziende Agricole SpA, but the Italian tax authorities classify it as a shell company for the 2008 tax year and reject its VAT credit claim for 2009.
• AG Collins argues that anyone who independently carries out an economic activity to obtain sustainable income qualifies as a taxpayer, regardless of the activity’s result.
• Italy may limit the right to deduct, refund or use VAT in a subsequent tax year under certain conditions.
• The Italian court is seeking clarification on this matter.

Source Taxlive

See also

• C-341/22 (Feudi di San Gregorio Aziende Agricole SpA) – AG Opinion – No right to deduct VAT if costs are not proportionate to the income

 

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