The appellant is engaged in activities such as market making and trading in financial instruments. Should the payments received by the appellant from its subsidiaries, whether or not based on the existing agreement between the parties, be taken into account when determining proportional deduction? Should the United Kingdom be considered a third country for the purposes of the VAT Act as of 1 February 2020?The dispute revolves around whether the taxpayer is entitled to proportional deduction of input tax on mixed costs, considering the TNMM and RPMS payments received from its subsidiaries. The court ruled that the approved method for determining the deduction did not allow for including these payments. Additionally, the disagreement concerns whether the UK should be considered part of the EU for tax purposes during the transition period after Brexit. The court held that the Withdrawal Agreement maintains the UK’s status as an EU member until December 2020.
Source: uitspraken.rechtspraak.nl
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