A municipality without the right to deduct VAT establishes a foundation. The municipality receives an amount from the foundation as compensation for the fields that the municipality makes available to sports clubs. The foundation receives the same amount from the hockey association. The association receives this amount from the municipality as a subsidy. This cash round leads to a VAT deduction right with regard to the fields.
The Supreme Court ruled that the Tax Authorities has not made plausible that the benefit that the municipality obtains is contrary to the purpose of the provisions of the VAT-directive. For example, it is important that a cost-effective compensation is requested and that the agreements are observed by the parties. The legal design also corresponds to the actual appearance and economic reality.
Contribution by Van Vilsteren BTW advies