Italian Tax Court Disregards VAT Penalties for “Dormant” Companies in Landmark Ruling

• The Italian tax court disregarded VAT penalties on “dormant” companies following a ruling by the European Court of Justice.
• This is the first national decision to apply the EU court’s interpretation.
• Certain companies in Italy are considered “non-operational” if they do not meet specific thresholds for revenue, inventory increases, and income.
• The decision allows affected taxpayers to potentially recover lost credits through an amended tax return.
• Filing an integrative tax return is the preferred approach to assert the lost credit.

Source: eutekne.info

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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