The municipality of Veenendaal’s attempt to avoid VAT liability on parking fees by removing barriers at its parking garages has failed. The Dutch tax authority (Belastingdienst) sent a letter to the municipality stating that it does not meet the requirements to be exempt from VAT. The municipality had hoped to save €140,000 annually with this tax scheme but will now have to pay VAT on the parking fees collected. The municipality is considering its response to the tax authority’s decision.
Source: taxlive.nl
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