European Court of Justice Issues Advocate General Opinion on Italian Simplified Resolution Mechanism for VAT

The European Court of Justice (ECJ) June 11 issued an Advocate General opinion for Case No. C-308/25, on the Italian simplified resolution mechanism for VAT. The taxpayer, an Italian company, was assessed for unduly deducted VAT and opted for Italy’s simplified resolution mechanism for taxable persons in tax court proceedings, for partial extinguishment of their VAT debt and exemption from late penalties and interest. The tax court noted that the mechanism likely infringed EU law. Upon request for a preliminary ruling, the Advocate General opined that the Treaty on European Union (TEU), EU Directive 2006/112/EC, and principle of fiscal neutrality, ...