Nullity of the legal transaction and right to VAT deduction

The Court of Justice clarifies the question

Authors

  • Rossella Miceli Università di Roma La Sapienza
  • Lorenzo Pennesi Università di Roma La Sapienza

DOI:

https://doi.org/10.6092/issn.2036-3583/19816

Keywords:

VAT, right of deduction, national prohibition, nullity of agreement, incompatibility european law

Abstract

The ruling of the European Court of Justice, 25th May 2023, C-114/22 establishes that the prohibition on the deduction of VAT as a consequence of the declared nullity of a legal transaction pursuant to domestic legislation is incompatible with European law (for example by simulation in the expression of will connected to the sale of an asset). The principle of effectiveness that permeates the EU legal system admits that the neutrality of VAT can only be limited where the right to deduction has been exercised fraudulently or abusively by the taxpayer.

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Published

2024-07-31

How to Cite

Miceli, R., & Pennesi, L. (2023). Nullity of the legal transaction and right to VAT deduction: The Court of Justice clarifies the question. Studi Tributari Europei, 13(1), II.15 - II.30. https://doi.org/10.6092/issn.2036-3583/19816

Issue

Vol. 13 (2023)

Section

News and commentary

License

Copyright (c) 2023 Studi Tributari Europei

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