Source
Unofficial translation
Amsterdam Court of Appeal ruled that the security costs are part of the general costs. It is plausible that the security costs relate to both the activities related to the sale of soft drugs and the activities related to the regular catering industry.
The activities of fiscal unity X consist of the operation of catering businesses, including five coffee shops, a hotel, a bar and a café, and the sale of clothing and souvenirs in, among other things, two shops and via the Internet. Soft drugs are sold in the coffee shops. The proceeds from the soft drugs constitute approximately 70% of the total turnover of the coffee shops and approximately 30% of the total turnover of X. Following a due diligence investigation, the inspector states that X has deducted too much VAT input tax. According to the inspector, the pre-pro rata method should be applied to general costs, based on the turnover of the entire fiscal unity. With regard to security costs, the inspector is of the opinion that these costs should be fully allocated to the sale of soft drugs.
Amsterdam Court of Appeal ruled that the security costs are part of the general costs. According to the court, it is plausible that the security costs relate to both the activities related to soft drugs and to activities related to the regular catering industry. The court points out that it is generally known that security guards are also used in the regular catering industry in the center of Amsterdam. It is not quite conceivable that the security officers will focus exclusively on buyers or users of soft drugs, but intervene in the event of incidents in the coffee shops and then do not distinguish between soft drugs customers and other customers. With regard to the pre-pro rata method, the court finds that the inspector has applied it correctly.
