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Tax adviser of cooperatives is VAT entrepreneur

After referral by the Supreme Court, the Court of Appeal in ‘s-Hertogenbosch ruled that X has a legal relationship with both cooperatives and in that context independently provides services to them for consideration.

X works as a tax advisor for clients of two cooperatives. X is also a member and co-director of those cooperatives. He receives a monthly advance of € 2500 from one cooperative. He always charges € 400 to the other cooperative for each cooperative that has been set up. After a due diligence, the inspector states that X is not a VAT entrepreneur and that he has therefore wrongly deducted input tax. According to the Supreme Court (28 February 2020, 18/00873, UN 2020/12.16), the Court of Appeal’s judgment on the lack of VAT entrepreneurship is insufficiently substantiated. Follows reference.

The ‘s-Hertogenbosch Court ruled that X has a legal relationship with both cooperatives and in that context independently provides services to them for consideration. The inspector argues in vain that there is an employment contract between X and the cooperatives. X argues, without being contradicted, that he carries out the work completely independently and is not under any authority. He therefore carries out the activities under his own name, for his own account/responsibility and bears the economic risk for those activities. X correctly deducted the input tax.

Source Taxlive.nl

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