Messrs B and C are each 40% shareholder in X bv and 50% shareholder in Y bv. Y bv is 20% shareholder in X bv and 100% shareholder in Z bv. According to the trade register, B is sole director of X bv and Y bv and Y bv is the sole director of Z bv. It follows from the articles of association of X bv and Y bv that each share entitles the holder to cast one vote. X bv has made personnel available to Z bv without charging VAT. The inspector finds that there is no question of a taxable transaction for turnover tax. As a result, X bv carries out both taxed economic activities and non-economic activities and should have taken this into account when determining the deduction of input tax. The inspector imposes an additional assessment for the incorrectly deducted input tax.
Source Taxlive
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