The italian vat discipline of shell companies. a critical analysis on its compatibility with the european legal system

The Italian legislation on shell companies, art. 30 of Law 23 December 1994, n. 724, is known for the severe para-sanction regimes it provides in the field of direct taxes and VAT. With reference to the latter, the irrationality of the discipline appears evident since It is totally misaligned with respect to the European matrix of the VAT system and Its evolution. The European Court of Justice, expected to rule on the compatibility of this discipline with the Union legal order, will most likely recognize a violation of the principle of neutrality of VAT, as well as of the principles of proportionality and legal certainty, which are fundamental European values. Therefore, the time has come for the legislator to intervene on this issue and to reshape the discipline, also in the perspective of the proposal for Directive 22 December 2021, n. 565 (so-called Unshell Directive) on cross-border shell entities.