- The Court of The Hague has ruled that associations are not required to pay VAT on contributions that are not directly related to services provided.
- This decision was made in response to a case involving a motorcycle enthusiasts’ association, which was previously found to provide taxable services such as selling products and advertising space.
- However, the association did not exceed the turnover limit of the small business scheme and the court ruled that it did not have to pay VAT on contributions received from its members.
- The court also found that there was no direct link between the association’s activities and the amount of the contribution, and that it did not act as a VAT entrepreneur.
- The State Secretary of Finance initially appealed against the ruling but later withdrew the appeal.
Source Taxence
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