5 Major Developments in Netherlands

5 Major Developments in Netherlands

• The Netherlands introduce e-orders via Peppol

• VAT is due on unused call minutes, text messages and MBs of data

• Tax Administration publishes knowledge group views

• Court: Standard VAT rate for long-term parking package hotel

• Tax and Customs Administration clarifies application zero rate of solar panels

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Bad debts (Relief for Underpaid Sales Invoices)

• Court of The Hague confirms input VAT correction for unpaid invoices

CESOP

• vatupdate.com/…/court-of-the-hague-confirms-input-vat-correction-for-unpaid-invoicesDutch Parliament Approves Implementation of New Reporting Obligations for Payment Service Providers to Combat VAT Fraud

• Legislative proposal for the implementation of the Payment Service Providers Directive adopted by the House of Representatives

• Memorandum in response to report of legislative proposal Implementation of Payment Service Providers Directive to House of Representatives

Composite Supply

• Parking after your stay in the hotel is charged with 21% VAT

• Deployment fee for home care support center not VAT exempt

• Court of Zeeland-West Brabant: Intermission drink must be regarded as distinct supply

• Standard VAT rate for parking in Park, Sleep & Fly packages

• Court of North Holland: Digital module is a separate supply against standard VAT rate

• Depositary receipts for shares do not lead to the termination of the fiscal unity if the shareholder is a director; high VAT rate entrance price sex establishment

• District Court of The Hague rules that the rental of closed and shared spaces is one exempt composite supply

• Court of North Holland: Composite supply for managing and investing pension assets, paying out pension rights and conducting the necessary administration

Coronavirus

• Coronavirus has affected VAT gap in the Netherlands and the EU

Customs

• A Guide to Postponed VAT Accounting (PVA) for E-Commerce Sellers

• Application of extended post-clearance recovery period for customs debts

• Dutch Customs’ determination of when amendments can be made to customs declarations too strict

DAC7

• BNC file change administrative cooperation directive taxes

• DAC7 Decree on collection and verification requirements for reporting platform operators for the automatic exchange of information regarding the digital platform economy

Deduction (Input Tax Credit)

• Deduction of input tax can only be refused if fraud has been proven

• No VAT deduction for roof renovation for the installation of solar panels

• Netherlands Court case: No VAT deduction if recipient never received goods and services

• No deduction for transactions with fraudulent official

• Additional assessments of turnover tax incorrectly deducted input tax

• No VAT deduction for roof design and renovation with non-integrated solar panels

• No VAT deduction for roof design and renovation with non-integrated solar panels

• Additional sales tax assessments justified due to lack of supporting documents for deducted input tax

• Approval of VAT deduction for the construction of a hospice

• Approval of VAT deduction for the construction of a hospice

• No information decision required for requesting proof of VAT deduction

• No formal notice required for requesting proof of VAT deduction

• No deduction for input tax for claims proceedings

• Court of Amsterdam: No right to deduct input VAT. Fines reduced to nil.

• No VAT deduction for partnership when renting a custom roof for solar panels

• Flashback on ECJ cases C-378/02 (Waterschap Zeeuws Vlaanderen) – Public authority – Transaction engaged in as taxable person and transaction engaged in as non-taxable person – Right to adjustment and deduction

• No information decision, yet substantiate pre-deduction

• Court of North Holland: Insufficient proof to sustantiate input VAT deduction

• Flashback on ECJ Cases – Joined Cases C-538/08 & C-33/09 (X Holding and Oracle Nederland) – Dutch VAT deduction exclusion decree (”BUA”) is confirm EU VAT legislation

• No input tax deduction and application of zero rate due to lack of proof and payment default

• No zero rate and deduction due to fraud

• VAT building costs hospice fully deductible

• Pension administration service provides one indivisible exempt benefit, VAT not deductible

• Court of Zeeland-West Brabant rules about intracommunity acquisitions and fraud

• Pro rata VAT deduction to be calculated with rental agreement

• Dentists do not get a refund of VAT on new business premises, sue mortgage lender

• Court of The Hague confirms input VAT correction for unpaid invoices
• Court of North Holland: Composite supply for managing and investing pension assets, paying out pension rights and conducting the necessary administration

• Abuse of law due to Jersey corporate structure

• No input tax deduction for partnership when renting a custom roof for solar panels

• Pro rata VAT deduction to be calculated with rental agreement

• Court of The Hague: Pro rata or actual use?

• Court of The Hague: Hospice provides short term housing and can deduct input VAT on construction

• Roof rental is not an economic activity for VAT purposes; abuse of law

• Supreme Court rules about solar panels and SMEs

• Court of Gelderland about abuse of law

• The car as a dividend payment

• Flyer ‘VAT correction private use of company car’ (Baker Tilly)

• Private use corrections and year-end revisions in the last Dutch VAT return of 2022

• Flashback on ECJ cases C-487/01 (Gemeente Leusden) & C-7/02 (Holin Groep) – Amendment of national scheme abolishing the possibility to opt for taxation of rental of immovable property

E-Commerce / Electronic Services

• A Guide to Postponed VAT Accounting (PVA) for E-Commerce Sellers

• Receive a return shipment? Note the recovery of VAT

• VAT rules for E-Commerce in the EU and Switzerland: an update

• Facility OSS system will be available by December 2023 at the latest

• Answering questions about report ‘VAT on cross-border digital services; Enforcement by the Tax and Customs Administration’

• VAT and internet sales Belgium: check old years and hefty fines!

E-Invoicing

• The Netherlands introduce e-orders via Peppol

ECJ (European Court of Justice)

• Burden of proof VAT fraud bottleneck Tax Authorities

• Sale of shopping center by project developer: VAT-free transfer of business?

• Flashback on ECJ cases C-378/02 (Waterschap Zeeuws Vlaanderen) – Public authority – Transaction engaged in as taxable person and transaction engaged in as non-taxable person – Right to adjustment and deduction
• Flashback on ECJ Cases – Joined Cases C-538/08 & C-33/09 (X Holding and Oracle Nederland) – Dutch VAT deduction exclusion decree (”BUA”) is confirm EU VAT legislation
• Flashback on ECJ cases C-487/01 (Gemeente Leusden) & C-7/02 (Holin Groep) – Amendment of national scheme abolishing the possibility to opt for taxation of rental of immovable property

• Flashback on ECJ Cases C-233/05 (V.O.F. Dressuurstal Jespers) – Work in a movable state – Concept of ‘manufactured goods’ – Horse subject to training and training

Environmental Tax

• Consumers are not liable for energy tax

EU Policy

• Memorandum in response to report of legislative proposal Implementation of Payment Service Providers Directive to House of Representatives

Excise

• Implementation regulation excise guidelines 2023 in Official Gazette

• Power of attorney leads to the possession of excise goods and tax liability excise duty

Exemption

• Answers to parliamentary questions about VAT on human germ cells

• No VAT exemption for payment transactions for technical and administrative services

• Parking space, what is that for VAT?

• Public documents about VAT sports exemption gliding

• Court of The Hague about services relating to payment transactions

• Purchase and construction contracts and VAT: an update

• Documents released on the VAT sports exemption for gliding

• When converting an office building into a hotel, no newly manufactured goods: overlap exemption does not apply

• Deployment fee for home care support center not VAT exempt

• Court of Zeeland-West Brabant: Conversion of an old office building into a hotel does not create a new building

• Approval of VAT deduction for the construction of a hospice
• World Obesity Day: Researcher Calls for Abolition of VAT on Fruit and Vegetables

• Consultation on Draft Bill to Abolish Property Transfer Tax Concurrence Exemption for Share Transactions

• When does the term building within the meaning of the VAT Act apply?

• Coronavirus has affected VAT gap in the Netherlands and the EU

• VAT exemption refused due to lack of required changes in legal and financial relationships

• Lending former trainees not exempt from VAT

• Pension administration service provides one indivisible exempt benefit, VAT not deductible

• Regional support center services for home care are not VAT-exempt home care

• The regional support center home care organization owes VAT for mediation between care recipients and care providers

• No VAT-exempt rental of guest rooms by low-care hospice

• District Court of The Hague rules that the rental of closed and shared spaces is one exempt composite supply

• Court of Zeeland-West Brabant: VAT exemption for payment transactions does not apply

• Ministries confirm: Regulations regarding secondments for appropriate education remain unchanged

• Extension of VAT Exemption for specific taxable individuals

• Extension of VAT Exemption for specific taxable individuals

• Court of North Holland: Composite supply for managing and investing pension assets, paying out pension rights and conducting the necessary administration
• Court of The Hague: Pro rata or actual use?
• Court of The Hague: Hospice provides short term housing and can deduct input VAT on construction

• Court of The Hague: No VAT exemption for regional support center services for home care organization

• VAT nomination exemption applicable to HOVO courses?

• According to AG, primary care providers perform VAT-exempt services for foundation

• VAT exemption partnership integrated primary care

• According to AG, VAT nomination exemption also applies to HOVO courses

• According to AG, higher education for the elderly falls under VAT exemption

• Clinker paved car park classified as a building for VAT

Fiscal Representation

• Dutch bonded warehouse practice – Import VAT Deferment License and financial representation

Fixed Establishment

• Reminder – Certain Transactions Between Head Offices and Branches Reportable for Dutch VAT Purposes as of 2024

Fraud / Tax Evasion

• Burden of proof VAT fraud bottleneck Tax Authorities
• Deduction of input tax can only be refused if fraud has been proven

• Court of The Hague: Not been made plausible that there is a chain in which VAT fraud has been committed

• Investigation: VAT fraud in the trade in packaging materials

• No deduction for transactions with fraudulent official

• Answering questions about report ‘VAT on cross-border digital services; Enforcement by the Tax and Customs Administration’
• Coronavirus has affected VAT gap in the Netherlands and the EU
• Letter to parliament on appreciation VAT Gap 2022 report
• No zero rate and deduction due to fraud
• Court of Zeeland-West Brabant rules about intracommunity acquisitions and fraud

• Prison sentences demanded for serious import VAT fraud

• Roof rental is not an economic activity for VAT purposes; abuse of law
• Court of Gelderland about abuse of law – VATupdate

• VAT losses due to carousel fraud in the Netherlands are relatively low

• VAT gap in 2020 amounted to € 93 billion for the total EU – the Netherlands’ share in this amount is €1.7 billion

• State Secretary Van Rij: Successful approach to VAT carousel fraud

• The car as a dividend payment

• Trying to save VAT is not abuse of law

• Prison sentence for pivotal role in VAT carousel fraud and large-scale tax fraud

• Car import disguised as scrap trade: two and a half years in prison for large-scale carousel (MITC) fraud

Implementation / Reform

• Implementation Act Payment Service Providers Directive adopted

Importation

• Dutch bonded warehouse practice – Import VAT Deferment License and financial representation
• Prison sentences demanded for serious import VAT fraud

Intra-Community Transactions

• Court of Zeeland-West Brabant rules about intracommunity acquisitions and fraud

Invoice

• VAT identification number according to AG not necessary for shifting VAT to recipient

Liability (Reverse Charge/Withholding)

• VAT identification number according to AG not necessary for shifting VAT to recipient

• Telecommunications Services Relocation Decree expires

• Telecommunications Services Reverse Charge Decree expires

• Directors’ liability for directors who deliberately submitted incorrect VAT returns

One Stop Shop

• Facility OSS system will be available by December 2023 at the latest

Private Use

• The car as a dividend payment
• Flyer ‘VAT correction private use of company car’ (Baker Tilly)
• Private use corrections and year-end revisions in the last Dutch VAT return of 2022

Rate

• Tax and Customs Administration clarifies application zero rate of solar panels

• Court: Standard VAT rate for long-term parking package hotel

• Why does a higher VAT rate apply to the supply of human germ cells used to fulfill a couple’s wish to have children than to the supply of germ cells for agricultural purposes?

• Answers to parliamentary questions about VAT on human germ cells

• Zero rate incorrectly applied to watch trading

• Parliamentary letter about research into definitions for fruit and vegetables in the context of a VAT zero rate

• Zero rate VAT for fruit and vegetables – far away..

• Abolition of VAT on fruit and vegetables is in danger of dying

• Netherlands Food VAT Temporary Cut Proposals – Food Inflation 18%

• University conducts research into influence of companies on tax law masters program

• Reduced VAT rate applicable to sexy dance parties

• Erotic parties under a reduced VAT rate

• 21% VAT for theater intermission drinks, tax interest partly scrapped

• Parking after your stay in the hotel is charged with 21% VAT
• Court of Zeeland-West Brabant: Intermission drink must be regarded as distinct supply

• Court of Appeal in The Hague: Reduced VAT rate to dance parties

• Normal VAT rate for long-term parking arrangement

• Standard VAT rate for parking in Park, Sleep & Fly packages

• University researcher: Start scrapping VAT on fruit and vegetables tomorrow

• Initiative Bill Affordable Groceries Act

• Initiative Bill Affordable Groceries Act; nil VAT rate for foodstuffs

• World Obesity Day: Researcher Calls for Abolition of VAT on Fruit and Vegetables

• Digital environment with teaching method no additional service: 21% VAT rate applies

• Extension of VAT fixed amount for solar panel holders

• Court of North Holland: Digital module is a separate supply against standard VAT rate
• Coronavirus has affected VAT gap in the Netherlands and the EU

• Uncertainty about passing on the VAT reduction for energy to some households

• Letter to parliament on monitoring VAT reduction on energy

• No input tax deduction and application of zero rate due to lack of proof and payment default
• No zero rate and deduction due to fraud

• State Secretary Van Rij: ‘IT not a showstopper when abolishing VAT on fruit and vegetables’

• Research results abolish VAT on fruit and vegetables expected in March

• Answers to parliamentary questions about abolishing VAT on fruit and vegetables

• Surf lessons from sea containers are subject to 21% VAT anyway

• Reduced VAT rate applies to parking at a multi-day festival

Real Estate/Immovable Property

• VAT entrepreneurship applies to the purchase and sale of plots

• Parking space, what is that for VAT?

• Purchase and construction contracts and VAT: an update

• Dutch Supreme Court clarifies the term “essentially new construction”

• VAT aspects of the provincial purchase and termination of cattle farms

• When converting an office building into a hotel, no newly manufactured goods: overlap exemption does not apply

• Renovation of an old office building into a hotel is not so far-reaching that it essentially creates a new building

• Court of Zeeland-West Brabant: Conversion of an old office building into a hotel does not create a new building
• Sale of shopping center by project developer: VAT-free transfer of business?
• Approval of VAT deduction for the construction of a hospice

• Court of Gelderland: No turnover sharing (partage) – taxable service

• This afternoon: Webinar on Transfer of shares in Real Estate Company (Dutch: Samenloop overdrachtsbelasting)

• Transfer of shares in Real Estate Company subject to transfer tax (Dutch: overdrachtsbelasting)

• Consultation on Draft Bill to Abolish Property Transfer Tax Concurrence Exemption for Share Transactions

• New legislative proposal Real Estate Transfer Tax

• When does the term building within the meaning of the VAT Act apply?

• Rental of enclosed and shared spaces one performance for VAT

• No VAT-exempt rental of guest rooms by low-care hospice
• District Court of The Hague rules that the rental of closed and shared spaces is one exempt composite supply
• Pro rata VAT deduction to be calculated with rental agreement
• Court of The Hague: Pro rata or actual use?

• Latest VAT developments in real estate

• Paved parking lot delivered to individuals divided into lots for housing is building

• Clinker paving car park qualifies for VAT as a building

• A car park counts as a building for VAT purposes

• Clinker paved car park classified as a building for VAT

Refund

• Court of Appeal in The Hague: VAT Compensation Fund. Interested party has not acted as a government.

• Receive a return shipment? Note the recovery of VAT
• Dentists do not get a refund of VAT on new business premises, sue mortgage lender

• One in three self-employed entrepreneurs does not reclaim VAT on transport

• No right to ”Irimierente” in the event of an official VAT refund

Registration

• Bill for the Implementation of Small Businesses Regulations Act submitted

• VAT and internet sales Belgium: check old years and hefty fines!

• The Netherlands Increases the VAT Registration Threshold and Extends Applicability Until the End of 2024

Reporting / Compliance

• Tax Administration publishes knowledge group views

• A Guide to Postponed VAT Accounting (PVA) for E-Commerce Sellers

• Big four influence (indirect) tax law study content

• Imposed tax return penalty nullified due to a malfunction in the Tax and Customs Administration system

• No VAT on contributions to the Association of Car Enthusiasts

• 6 VAT Country Guides on the Netherlands

• VAT declaration must be made with correct subnumber

• Second sub-decree Woo request regarding VAT Fiscal Unity upon transfer of beneficial ownership of shares

• Late submission of an objection to VAT payment is non-excusable

• Gross negligence proven for the wrong time period, offense penalty nullified

• At the beginning of February, we will remind entrepreneurs via text message about VAT returns

• e-Recognition remains the sole and mandatory login method for Mijn Belastingdienst Zakelijk

• PKIsigning makes it possible to send and pay VAT returns via iDEAL

• Directors’ liability for directors who deliberately submitted incorrect VAT returns – VATupdate
• Private use corrections and year-end revisions in the last Dutch VAT return of 2022

SME (Small and Medium- Sized Enterprises)

• Extension of VAT Exemption for specific taxable individuals
• Supreme Court rules about solar panels and SMEs

Taxable Amount

• Court of North Holland: Unused units of calling minutes, text messages and MBs subject to VAT

• Court of North Holland: No VAT for contributions to association for enthusiasts of a certain brand of cars

• Invoice amount determines VAT when selling car from legal entity to shareholder

• Company owner may purchase business car for a bargain price

• The sales price of 10% of the appraisal value is the basis for levying VAT on the sale of a car to shareholder

• Trying to save VAT is not abuse of law

• Sale of car to shareholder: invoiced value applies, instead of the market value

Taxable Person

• VAT entrepreneurship applies to the purchase and sale of plots

• Entrepreneurs beware: Expansion of fixed solar panels

• Delivery drivers Deliveroo work on the basis of an employment contract

• The municipality acts as a VAT entrepreneur when collecting packaging waste separately

• Municipality VAT entrepreneur for separate collection of packaging

• No deduction for input tax for claims proceedings
• Court of Amsterdam: No right to deduct input VAT. Fines reduced to nil.
• Flashback on ECJ cases C-378/02 (Waterschap Zeeuws Vlaanderen) – Public authority – Transaction engaged in as taxable person and transaction engaged in as non-taxable person – Right to adjustment and deduction
• The regional support center home care organization owes VAT for mediation between care recipients and care providers

• Tax advisor with solar panels is not a small entrepreneur

Taxable Transaction

• Updated Decree on travel agency VAT scheme (TOMS) published

• Project developer’s activities not a partage, but a VAT-taxed service

• Entrepreneurs beware: Expansion of fixed solar panels

• VAT is due on unused call minutes, text messages and MBs of data

• No economic activity for VAT due to insufficient connection between contribution and car club activities

• VAT aspects of the provincial purchase and termination of cattle farms

• No partage, but VAT-taxed service

• Access to the performance and provision of intermission drink are distinguished and independent achievements

• Court of North Holland: No VAT for contributions to association for enthusiasts of a certain brand of cars
• Court of Gelderland: No turnover sharing (partage) – taxable service

• Conducting damage claim proceedings in one’s own interest does not qualify as an economic activity

• Garbage and VAT (status procedure)

• Reminder – Certain Transactions Between Head Offices and Branches Reportable for Dutch VAT Purposes as of 2024
• Paved parking lot delivered to individuals divided into lots for housing is building

• Auction house owes VAT from commissions and premiums

• Delivery of a built-up plot to the collective of buyers results in the delivery of several building sites

Tax Authorities / Penalties

• VAT debt in CIT declaration no supplementation, but a reasonable position and therefore no fine

• Tax Authorities publish knowledge group positions

• Avoid a fine, show invoices to tax adviser

• No formal notice required for requesting proof of VAT deduction

• Netherlands Maintaining 8% Late Payment Interest Rate Despite Increase in Base Rate

• Court of Amsterdam: No right to deduct input VAT. Fines reduced to nil.

• Public consultation – Simpler tax system: tax arrangements under review

• Answering questions about report ‘VAT on cross-border digital services; Enforcement by the Tax and Customs Administration’

• The Tax and Customs Administration will probably be able to implement new policy again from 2026

• Extension of VAT Exemption for specific taxable individuals

• From now on, tax advisors can litigate digitally at all courts

• As of today, digital litigation in appeal for national taxes is possible

• At the beginning of February, we will remind entrepreneurs via text message about VAT returns
• e-Recognition remains the sole and mandatory login method for Mijn Belastingdienst Zakelijk

• VAT assessment for Belize company

• ICT systems tax authorities run ‘serious continuity risks’

Technology

• The Tax and Customs Administration will probably be able to implement new policy again from 2026
• ICT systems tax authorities run ‘serious continuity risks’

TOGC (Transfer of a Going Concern)

• Sale of shopping center by project developer: VAT-free transfer of business?

TOMS (Tour Operators Margin Scheme)

• Updated Decree on travel agency VAT scheme (TOMS) published

Triangulation

• Are the Dutch simplified triangulation rules in line with the EU VAT Directive?

VAT Group

• Knowledge Groups Positions of the Dutch Tax Authorities on RETT/VAT matters

• Knowledge group positions on VAT fiscal unity with partnerships revealed

• Minority interest holders can also belong to VAT group

• Second partial decision with documents on forms of VAT group

• Second partial decision with documents on forms of a VAT fiscal unity for VAT purposes

• No financial interdependence despite risk to business results due to lack of control

• Depositary receipts for shares do not lead to the termination of the fiscal unity if the shareholder is a director; high VAT rate entrance price sex establishment

• Minority interest holders can also belong to VAT Fiscal Unity

• No fiscal unity partnership with beneficial ownership of shares and BV

• Court of Zeeland-West Brabant: Financial interdependence for VAT group missing

VAT Identification Number

• VAT identification number according to AG not necessary for shifting VAT to recipient

ViDA

• VAT in the Digital Age – part 2: E-invoicing (blog)

• The Dutch Government supports the EU VAT in the Digital Age (ViDA) proposal

• The Netherlands is another Member State to accommodate the ViDA initiative

• VAT in the Digital Age – part 1: Introduction – Blog of Less Grey

• Decision note accompanying BNC sheet Directive and regulation on VAT rules for the digital age

• Tax legislative proposals European Commission

Webinar/Event/Podcast

• VAT in the Digital Age – part 2: E-invoicing (blog)
• This afternoon: Webinar on Transfer of shares in Real Estate Company (Dutch: Samenloop overdrachtsbelasting)
• VAT in the Digital Age – part 1: Introduction – Blog of Less Grey