- The Court of Arnhem-Leeuwarden has ruled that the main benefit of X is the subscription to use their telecommunications services.
- The ‘support bundle’ payment function is an additional element that shares the same tax fate as the main benefit. X offers telephone subscriptions with combinations of call, SMS and data bundles, and customers also have a support bundle of €1, which allows them to call support or content numbers, among other things.
- X argues that the support bundle is a separate multipurpose bundle, but the inspector disagrees and imposes an additional VAT assessment on X.
- The Court ruled that the payment function of the support bundle is not an end in itself for the average consumer and cannot be purchased or used separately from X’s other telecommunication services. Therefore, VAT can be determined at the time of subscription and X owes VAT on the full subscription fees received. X’s appeal to the Decree is unsuccessful.
Source Taxlive
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