- The Zeeland-West-Brabant District Court ruled that the zero rate does not apply to the delivery of the horse. X, who trains, cares for, and trades horses, sold a horse in 2016 without including sales tax on the invoice.
- The buyer’s son rode the horse in 11 competitions within Europe that year.
- The inspector determined that X delivered the horse in the Netherlands and imposed an additional assessment and fine. X appealed the decision.
- The court ruled that the zero rate does not apply because the horse was only exported to the United States after delivery.
- The court also dismissed the argument that the competitions were held to maintain the horse’s condition before export as implausible. The default penalty was deemed justified. X’s appeal was unsuccessful.
Source Taxlive
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