Netherlands: Successor cannot revise predecessor’s VAT, rules court

– Maatschap X operated a dairy farm in the Netherlands.
– A’s father purchased a dairy farm from D in 2015.
– C provided the business assets free of charge to partnership Y and later to X.
– X’s services were exempt from VAT under the agricultural scheme until January 1, 2018.
– D had previously enjoyed input VAT deduction for VAT charged to him.
– In 2019, D submitted a supplementary declaration due to the revision of the previously claimed input VAT deduction.
– X appealed a refund decision for the first quarter of 2018.
– The Northern Netherlands District Court ruled against X.
– Revision rules require the revision of one annual period of previously claimed input VAT deduction.
– The transition to a new regime on January 1, 2018 did not cause any revision for X.
– X was not entitled to input VAT deduction due to revision.
– X’s appeal based on the principle of neutrality was rejected.
– The court declared X’s appeal unfounded.

Source: futd.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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