C-174/07 Commission v Italy

Judgment · Court of Justice · Italy · 11 December 2008

Extending the Italian VAT amnesty to 2002 was a further infringement

What is the case?

Italy had already been found, in Commission v Italy (C-132/06), to have breached EU law through the tax amnesty in Articles 8 and 9 of its Finance Law for 2003, which discontinued the assessment of taxable transactions for a series of tax periods in exchange for a payment. By Article 2(44) of the Finance Law for 2004 it extended that amnesty to the 2002 tax period, so that generally and indiscriminately the assessment of taxable transactions effected in 2002 was also to be discontinued. The Commission brought fresh infringement proceedings.

What is the Court asked?

Whether, by extending the tax amnesty to the 2002 tax period and so providing generally and indiscriminately that the assessment of taxable transactions effected in that period was to be discontinued, Italy failed to fulfil its obligations under the VAT Directive and under Article 10 EC.

The Court’s decision

The Court finds the infringement established. By that extension Italy failed to fulfil its obligations under Article 2(1)(a), (c) and (d) and Articles 193 to 273 of the VAT Directive, which from 01-01-2007 replaced Articles 2 and 22 of the Sixth Directive, and under Article 10 EC. A general and indiscriminate renunciation of verification and collection is incompatible with the duty to ensure that VAT is collected in full. The sequel to C-132/06 and, with it, the authority that closes off VAT amnesties.

AI-generated and factual. Not an official document: verify against the text below.

Legislation interpreted

Article 2 of Directive 2006/112/EC Subject matter and scope
Article 193 of Directive 2006/112/EC Persons liable for payment of VAT to the tax authorities
Article 2 of Sixth Directive 77/388/EEC
Article 10 of Sixth Directive 77/388/EEC Chargeable event and chargeability of tax
Article 22 of Sixth Directive 77/388/EEC Obligations of persons liable for payment

Subject matter

Failure of a Member State to fulfil obligations · Article 10 EC · Directive 2006/112/EC · Sixth VAT Directive · Obligations under domestic rules · Monitoring of taxable transactions · Amnesty

Topics

Obligations under domestic rules · Monitoring of taxable transactions · Amnesty

Record

Court: Court of Justice
Case number: C-174/07
ECLI: ECLI:EU:C:2008:704
Official texts: Judgment of 11 December 2008 (62007CJ0174)
Cite as: Judgment of 11 December 2008, Commission v Italy, C-174/07, EU:C:2008:704

Judgment of 11 December 2008

Text as published by the Court on EUR-Lex, CELEX 62007CJ0174.

Judgment of the Court (Fifth Chamber) of 11 December 2008 – Commission v Italy

(Case C‑174/07)

Failure of a Member State to fulfil obligations – Infringement of Articles 2 and 22 of Directive 77/388/EEC: Sixth Council Directive of 17 May 1977 on the harmonisation of the laws of the Member States relating to turnover taxes – Common system of value added tax: uniform basis of assessment (OJ 1977 L 145, p. 1), replaced, as from 1 January 2007, by Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax (OJ 2006 L 347, p. 1) – Obligations under domestic rules – National law which discontinues the monitoring of taxable transactions carried out during a series of tax periods.

Operative part

The Court:

1. Declares that, by extending, by Article 2(44) of Law No 350 of 24 December 2003 relating to the provisions for drawing up the annual and pluriannual budget of the State (Finance Law for 2004) (legge n. 350, disposizioni per la formazione del bilancio annuale e pluriennale dello Stato (legge finanziaria 2004)), to 2002 the tax amnesty provided for in Articles 8 and 9 of Law No 289 of 27 December 2002 relating to the provisions for drawing up the annual and pluriannual budget of the State (Finance Law for 2003) (legge n. 289, disposizioni per la formazione del bilancio annuale e pluriennale dello Stato (legge finanziaria 2003)), and consequently providing generally and indiscriminately that the assessment of taxable transactions effected in the 2002 tax period is to be discontinued, the Italian Republic has failed to fulfil its obligations under Article 2(1)(a), (c) and (d) and Articles 193 to 273 of Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax, which as from 1 January 2007 replaced Articles 2 and 22 of Sixth Council Directive 77/388/EEC of 17 May 1977 on the harmonisation of the laws of the Member States relating to turnover taxes – Common system of value added tax: uniform basis of assessment, and under Article 10 EC;

Declares that, by extending, by Article 2(44) of Law No 350 of 24 December 2003 relating to the provisions for drawing up the annual and pluriannual budget of the State (Finance Law for 2004) (legge n. 350, disposizioni per la formazione del bilancio annuale e pluriennale dello Stato (legge finanziaria 2004)), to 2002 the tax amnesty provided for in Articles 8 and 9 of Law No 289 of 27 December 2002 relating to the provisions for drawing up the annual and pluriannual budget of the State (Finance Law for 2003) (legge n. 289, disposizioni per la formazione del bilancio annuale e pluriennale dello Stato (legge finanziaria 2003)), and consequently providing generally and indiscriminately that the assessment of taxable transactions effected in the 2002 tax period is to be discontinued, the Italian Republic has failed to fulfil its obligations under Article 2(1)(a), (c) and (d) and Articles 193 to 273 of Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax, which as from 1 January 2007 replaced Articles 2 and 22 of Sixth Council Directive 77/388/EEC of 17 May 1977 on the harmonisation of the laws of the Member States relating to turnover taxes – Common system of value added tax: uniform basis of assessment, and under Article 10 EC;

2. Orders the Italian Republic to pay the costs.

Orders the Italian Republic to pay the costs.