The State Secretary for Finance has published a decision approving the refund of turnover tax on the basis of art. 29 Law OB 1968 for discounts granted on the supply of energy in connection with the temporary application of the reduced VAT rate for energy. If discounts contractually (partly) relate to a supply period in which the reduced VAT rate applies, then a reduction of the taxable amount for that period can only take place at an associated VAT rate of 9%. The allocation of the discount amount over a period in which both the general and the reduced VAT rate apply would result in a disproportionate additional administrative burden for the energy suppliers in relation to the temporary VAT reduction. The State Secretary therefore approves that, for the calculation of the VAT refund under Section 29 of the Dutch Turnover Tax Act (Wet OB) for discounts and partial discounts granted, the VAT rate applicable at the time when the contract containing the discount or partial discount was concluded may be used.
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