Fine in the event of a hefty VAT assessment overturned because of an arguable point of view

The Supreme Court ruled that the Court of Appeal failed to address X bv’s claim that there is an arguable point of view with regard to the fine.
The court upheld the decision with regard to the fine and pointed out that there was reasonable doubt about the starting point for VAT reclamation during the period in question. X bv operates a computer wholesaler and claimed approximately € 5.2 million in input VAT from 2007-2010.
The inspector found that X bv was not entitled to deduct input tax for purchases prior to ICLs to so-called ‘missing traders’ from various countries, resulting in an additional VAT assessment of € 33.7 million and a fine.
The District Court of Noord-Holland nullified the additional tax assessment, but the inspector appealed and the Court of Appeal of Amsterdam reduced the assessment.
X bv appealed in cassation, arguing that the Court of Appeal failed to address essential assertions regarding the fine. The Supreme Court ruled in favor of X bv’s appeal in cassation.