The deduction of input VAT is allowed when there is a direct and immediate link between the acquisition of goods or services and subsequent taxable transactions. If such a direct link is absent, partial deduction may be allowed if the costs are part of general expenses included in the prices of goods or services provided by the taxpayer. The taxpayer claims that they provided taxable (management) services in the years 2017 and 2018, justifying input VAT deduction. However, the tax authority disputes this and argues that the taxpayer did not provide such services or receive compensation. The court concludes that the taxpayer has not proven a direct link between the incurred costs and taxable activities, and thus, full input VAT deduction is not justified. If so, it agrees with the tax authority’s assessment.
Source: uitspraken.rechtspraak.nl
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