VAT on resale of a car to a shareholder is not deductible

X, a sales tax fiscal entity, bought a car in 2017 and sold it to its sole shareholder for part of the purchase price.
X filed a dividend tax return for a disguised dividend and reclaimed sales tax for the third quarter of 2017, including input tax for the car purchase.
However, the inspector imposed an additional assessment for the year 2017 and disputed whether X was entitled to deduct input tax.
The North Holland District Court ruled that X was not the purchaser of the car and therefore not entitled to deduct VAT.
The court also found that the inspector failed to demonstrate conditional intent for the offense fine but showed gross negligence, resulting in a reduced misdemeanor fine of 25%.
The appeal was well-founded and the misdemeanor fine was further reduced by 15% due to exceeding the reasonable period for handling the case.