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VAT deductible if legal entity pays invoice on behalf of shareholder?

The Supreme Court recently considered whether a “BV” could deduct the VAT in respect of attorney’s fees from its shareholder. The Supreme Court finds that the Court of Appeal wrongly failed to pay attention to the BV’s argument that it had to purchase these services in connection with the continuation of its business activities. The case was referred back to the Den Bosch Court for further investigation of the facts.

Source: BDO NL