5 Major Developments in Netherlands

5 Major Developments

• Government Clarifies VAT Refund Provision for Discounts in Connection to VAT reduced rate to Energy
• Leaflet additional tax assessment VAT

• Delivery of plots with foundations and manure pits below ground level due to the Real Estate Decree footnote still exempt from VAT

• Government insists on using eRognition (eHerkenning) as a means of authentication
• Important VAT changes for supplies between head office and fixed establishment

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Real Estate/Immovable Property

• Sale of plots in the context of termination of a company subject to VAT

• Delivery of plots with foundations and manure pits below ground level due to the Real Estate Decree footnote still exempt from VAT

• Despite the demolition of buildings, hospital grounds are not construction sites

• Rental tennis hall and supply of electricity for turnover tax one performance

• Supply of a new-build home does not result in status of VAT taxable person

Customs

• Update 2 – Preparations DMS 4.1

• Leaflet additional tax assessment VAT

• Only if the Tax and Customs Administration concludes that the turnover tax return is incorrect can the COVID-19 subsidy be adjusted

• Turkey is now Türkiye: state this correctly on all your documents

Rate

• Netherlands Court Case: No reduced VAT rate for supplies of e-books in 2019

• Impact of the new structure of the VAT rate guideline

• Zero rate wrongly applied, offense fine not justified

• Netherlands Court Case: No reduced VAT rate on self-care products

• Reduced VAT rate electronic download e-books not already in 2019

• Dutch legislative process for introducing equal treatment delivery of e-books not unreasonably long

• VAT rate of 21% for e-book sales was allowed

• Standard VAT rate applicable on delivery of self-care products

• Sclerotia are not foodstuffs subject to the reduced rate

• Magic mushrooms (Sclerotica) are not a food, so 21% VAT applies

• Magic Mushrooms for mind-altering effect or hallucinatory effect, so normal VAT rate

• Government Clarifies VAT Refund Provision for Discounts in Connection to VAT reduced rate to Energy

• Magic truffles no food no reduced VAT rate

• Call to extend inflationary excise and VAT cuts

• Magic truffles are not a food: low VAT rate does not apply

• PLUS supermarket in Rozenburg does not charge VAT on fruit and vegetables for a week

• The (reduced) VAT rate on self-care products keeps people busy

• Court not competent by decision of the Tax Authorities on request for an official reduction

• Allowance energy suppliers in case of VAT refund due to discount

Tax Authorities/Penalties

• Substantial default fine for years of paying too little VAT

• Offense fines for intentional negligence of VAT supplements

• Documents on supervision strategy VAT returns for SMEs made public

• Documents on risk selection turnover tax for SMEs partly public

• Complaints about the authorities’ tax phone service

• Tax authorities provide little insight into risk selection for turnover tax

• Tax authorities will remind SMEs of their VAT return by text message

• 50% penalty fines for ‘shoddy’ cleaning company

• Tax authorities hope to provide clarity with information leaflet for VAT assessment

• Leaflet VAT assessments

• Too late objection to VAT additional assessment was rightly declared inadmissible

• Response period of six months does not conflict with EU defense principle

• Application for username and password at the tax authorities is no longer possible

• No objection costs despite lower VAT assessment and payment default fine

Fixed Establishment

• Important VAT changes for supplies between head office and fixed establishment

• Will you pay VAT on transactions between head office and permanent establishment in 2024?

• Is VAT payable in 2024 on transactions within the legal entity?

• Netherlands to apply ECJ Case Danske Bank from 1 January 2024

• Foreign establishments to be excluded from Dutch VAT groups

SME (small and medium-sized enterprises)

• Authorities publish risk selection factors VAT

Fraud Tax evasion

• Large-scale tax fraud with margin scheme and import VAT in luxury watch trade

• Accountant does not insist sufficiently to file a VAT return in Belgium and is partly liable for damage

• Bank may block account after suspected VAT fraud

• Cleaning company deliberately evaded sales tax by including invoices for services not performed and private expenses in administration and declarations

• Trader who supplies missing traders must comply with tax information obligations on pain of a penalty of € 5,000 per day

Refund

• VAT refund requests of €63,000 are overdue

• Did you pay VAT in other EU countries in 2021? How to reclaim VAT

Taxable Person

• Is VAT payable on costsharing between a head office and its branch?

• Business was driven by man and not by his ex-partner

• No VAT for motorcycle enthusiasts’ club

• Association of BSA enthusiasts is not a VAT entrepreneur

• Delivery of a new-build home does not constitute VAT entrepreneurship

Margin Scheme

• Sales costs car dealer not deductible when applying profit margin scheme

• Maximum community service for watch dealer who incorrectly applies margin scheme

Exemption

• No VAT charged on the supply of leased property

• Clarification: disclosure obligation VAT exemption

• VAT guideline in the cooperation between education and childcare

• Circumcision without medical indication not exempt from VAT

• Making teachers available is not an educational service: VAT exemption rejected

• No VAT exemption for circumcisions

• Providing staff, not providing education

• No medical exemption for religious circumcisions

• Foundation that supplies teachers does not provide education

Input Tax Credit

• Company pension fund administrator provides VAT-exempt insurance services, no right to VAT deduction

• Limited input tax deduction due to failure to provide proof

• Inspector refuses to deduct unnecessary costs and costs to improve own home

• Tennis hall owner can’t get VAT solar panels back

• No error correction for VAT deduction via adjustment scheme

• No delivery or VAT deduction due to combination of legal acts

• No input tax deduction after sale of new school building

Reporting/Compliance

• Tax authorities must provide personal data to suppliers and buyers of car dealers

• Entrepreneurs receive a VAT return reminder by text message

• Wrongly sent additional tax assessment VAT

• Government insists on using eRognition (eHerkenning) as a means of authentication

Excise

• Correct assessment of excise tax on hand to have red diesel

• Withdrawal of temporary decision to reduce excise duty in 2022

Intra-Community Transactions

• Do not pay VAT on the purchase of a business car in another EU Member State

Composite Supply

• Support bundle separate service from telephony subscription