Court of Appeal Amsterdam: Is the the interest earned on a third-party account is exempt from VAT?

• The case involves a notary office and their NA’s VAT from 2011 to 2013 with penalty charges.
• The issue is whether the interest earned on a third-party account is exempt from VAT under Article 11 of the Wet OB 1968.
• The court ruled that the notary office did not provide sufficient evidence to prove that the interest earned was not a compensation for a service provided.
• The court also ruled that the notary office’s use of the third-party account and the interest earned was a direct, necessary, and sustainable extension of their taxable activity as a notary office.
• The court did not find sufficient evidence to support the notary office’s argument that the interest earned was a by-product of financial activities that could be excluded from the calculation of their VAT deduction.

Source: uitspraken.rechtspraak.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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