- Vigna Ottieri Srl (Vigna) was considered an empty company for tax purposes in Italy in 2008
- Italy has a regulation to prevent fraud and abuse related to empty companies
- The regulation states that an empty company loses the right to transfer any VAT credit to the next period
- The European Court of Justice (HvJ) found this Italian regulation to be in conflict with the VAT directive
- The HvJ ruled that a person cannot be denied VAT taxpayer status based on the economic value of their transactions
- The VAT directive and principles of neutrality and proportionality prevent a national regulation from denying VAT deduction based on insufficient transactions
- The case was heard on March 7, 2024, with the reference number C-341/22.
Source: nlfiscaal.nl
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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