Michaela Merz


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Italy – Tax authorities may assess under-declared VAT by extrapolation


The Advocate General (AG) has opined that the principles of EU law do not preclude national legislation from assessing a taxpayer, who is presumed to have under-declared VAT, for unpaid VAT by means of estimating that taxpayer’s likely revenues based on studies of comparable taxpayers within the same economic sector. However, the national courts must ensure that principles of law, such as the right to challenge the basis of assessment, are respected (Fontana (C-649/16)). Continue reading


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Risk of PE (permanent establishment) for VAT in Italy


A new minefield is created around fixed establishments for VAT purposes, even if there is an extensive case-law of the European Court of Justice to determine whether such an establishment exist or not. The main elements of this legal analysis were also embedded into the EU VAT Regulations, however, some of the member states tend to interpret now these rules more widely as before. Continue reading