If a VAT entrepreneur is incorrectly assigned two VAT numbers, it may happen that he deducts too much input tax under the incorrect VAT number. In that case, the tax authorities may collect the VAT from the entrepreneur. According to the Zeeland-West-Brabant District Court, this is even allowed under the incorrectly assigned VAT number.
A man acted as a (tax) business and practical adviser through a sole proprietorship. In addition, he and his wife rented out eight apartment complexes and retail spaces. He was assigned a VAT number for both activities. As a result of a due diligence, the inspector found that the VAT entrepreneur, designated by the combination, had wrongly not split the input tax during the rental activities. This is because the combination engaged in both taxed and VAT-exempt leases. The Inspector imposed additional assessments on the combination of additional assessments for the years 2010 to 2015. In addition, he imposed additional assessments on the sole proprietorship for the years 2013, 2014 and 2015.
Source Taxence
