- Entrepreneurs who provide both taxable and untaxed services have their right to deduct VAT limited by a pro rata calculation, but there are exceptions in the VAT Directive for certain activities.
- One such exception concerns additional financial transactions, which has not been included in the VAT Act in the Netherlands. The scope of this exception is examined by VAT specialists Simon Cornielje and Werner Gelderblom in an article, where they conclude that group financing activities are economic activities and can be taxed unless they are comparable to activities of a private investor.
- The authors also provide criteria for determining whether an activity has a direct, lasting, and necessary requirement for the taxable activity.
- Finally, they recommend implementing the exception in a nuanced manner in the VAT Act.
Source Taxlive
Latest Posts in "Netherlands"
- Court Ruling: Applicability of Reduced VAT Rate to Stairlifts under Dutch and EU Law
- What about VAT for private use of a car in the latest VAT return?
- Update on Turnover Tax Decree Regarding Reduced VAT Rate Effective January 1, 2026
- Updated Explanatory Decision on Scope and Application of Table I, Dutch VAT Act, Effective 2026
- Dutch Hospitality Prices to Rise 4% in 2026 Amid VAT Hike and Growing Debt Concerns
