Dutch: “Sportcoöperatie is geen BTW-ondernemer”
In its judgment of 4 July 2019, the Dutch Gelderland District Court ruled that a sports cooperative that is involved in the provision of equestrian sports is not a VAT entrepreneur.
The case deals with a sports cooperative with four members. The husband and daughter of the director of the sports cooperative are two of the four members. The activities consist of the organization of (international) (equestrian) sporting events, the operation of (equestrian) sporting accommodations and the training and training of participants in the (equestrian) sport. The activities are provided in one riding school.
The Dutch tax authorities concluded that the sports cooperative was not a VAT entrepreneur. The sports cooperative and the owner of the riding school have not concluded a lease or user agreement. The sports cooperative does not pay rent or compensation for the use of the riding school. The sports cooperative has not concluded any agreements with the members of the sports cooperative and the members of the sports cooperative have not paid the sports cooperative a fee for the services of the sports cooperative.
The Court agrees with the tax authorities, because the sports cooperative has insufficiently substantiated the intention to provide an economic activity. Among other things, the sports cooperative has not concluded any written agreements with the members. The input of horses, the ownership of horses and the distribution of profits are insufficiently substantiated in writing.
Source: AccountancyVanmorgen (Dutch)