Reasonableness and Diligence of Transactions Performed by Non-Existent Traders: Asymmetries between the Italian and the European Case Law

Abstract

The topic of transactions performed by non-existent trader arises quite often in case law, although it is not regulated by the VAT Directive. In this article, the authors analyse the elements that according to the ECJ are relevant in order to identify these kinds of transactions and to compare those elements with the domestic case law. According to the authors, the Italian Supreme Court has adopted, over the years, decisions which are not in line with those of European case law, making the operators’ role difficult.