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No revision via VAT return of incorrectly invoiced VAT

The Court of Appeal in The Hague ruled that it was due to X’s negligence that she did not make use of the option to submit a written request for review. The refund of the incorrectly invoiced VAT via the VAT return was rightly refused.

In the years 2010 to 2017, X bv charges VAT on invoices with the description ‘management fee’. Later it turns out that the VAT was incorrectly charged by X, because it concerns a right to profit and not a management fee. To correct this error, X will issue credit notes in the first quarter of 2018. X then requests the incorrectly charged VAT back in the VAT return for the first quarter of 2018. The inspector refuses the refund and imposes an additional assessment for the amount of VAT owed without taking the credit notes into account.

The Court of Appeal of The Hague has ruled that in practice it has not been made impossible or extremely difficult for X to exercise its right of review. For the review of the incorrectly charged VAT, X does not make use of the legal regulation laid down in the Decree of the State Secretary of Finance of 10 October 2017, no. BLKB 2017/7366, UN 2017/55.14 on the basis of which it is possible to submit a written review request. It is due to the negligence of X that it did not use the option of submitting a written request for review. The refund was rightly refused and the additional assessment remains in force.

Source Taxlive.nl

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