A campsite offers pitches for short stay as well as for the entire year. It receives rent for the annual pitches. There are also lots that are owned by camping recreationists. In that case, the recreationist pays a contribution for access to the campsite.
The campsite charges Water Authority (a governmental body) levies on to the tenants and owners of the plots. In practice, this concerns a levy that is connected to draining dirty water from the property (and burdening the sewerage system). The amount is determined by multiplying the number of cubic meters of water purchased by an amount of € 1.25. The water use is not measured for every recreationist, but usually once a year and at the end of the stay. The campsite does not charge VAT on this Water Authority levy. Nor has it declared and paid any VAT on this.
During an audit it was found that, according to the financial administration of the interested party, an amount of € 5,148 in levy costs had been charged to the camping guests. For that year, € 2,759 had been paid for the levy by the campsite. This resulted in a difference of € 2,389.
According to the Court, the campsite was not legally entitled to reclaim the money from the camping guests.
Nor did this concern a recharge that was not subject to VAT. After all, the campsite charges a flat-rate, self-determined amount.
This was also not a non taxable passing on of costs that is based on a relation between the Water Authority and the camping guests. The campsite received the assessment from the Water Authority in its own name, because it has been designated as a tax payer based on the law. The levy is therefore not paid in the name and on behalf of the park recreationists.
Source: www.rechtspraak.nl
Author: Joyce Westerveld, VAT Advisor at RED
