Dutch Court Rules Against Taxpayer in VAT Case Involving Fundraising Activity

• The Dutch tax authority has imposed a VAT assessment on partnership X.
• Partnership X argues that it is not a VAT entrepreneur because its activities did not involve sustainable participation in economic transactions.
• The court disagrees with partnership X’s argument, stating that by selling t-shirts, hoodies, and bags for several months, partnership X has participated in economic transactions in a sustainable manner and has competed with other stores selling clothing and bags.
• The court also rules that there is no reason to reduce the VAT assessment due to a donation element, as VAT is calculated based on the consideration received.
• The appeal is dismissed.
• Tax category: VAT
• Tax period: January 1, 2021, to March 31, 2021
• Court: Zeeland-West-Brabant District Court
• Date of decision: August 24, 2023
• Case number: 22/1542
• ECLI reference: ECLI:NL:RBZWB:2023:5897

Source: nlfiscaal.nl

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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