- Italy’s Supreme Court held that in bank-account-based tax assessments, the reconstructed revenues are not to be reduced by VAT.
- The taxpayer had argued that VAT should be split out from the assessed amounts, citing EU neutrality principles.
- The Court rejected this, saying VAT neutrality is preserved because Italian law allows the taxpayer to pass the additional VAT on to the customer through recourse (art. 60(7), DPR 600/1973).
- EU case law generally supports VAT inclusion in evaded amounts unless national law effectively allows recourse and input VAT deduction.
- The text notes that this position may fail in practice if recourse is ineffective or if deduction rights are unavailable in the specific case.
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.
