Application of Reverse Charge Mechanism in Personnel Loaned for Construction Works: Tax Law Case

• The case involves the application of the reverse charge mechanism for VAT.
• The taxpayer provided personnel for construction works related to immovable property.
• The taxpayer did not dispute that the VAT charged to them was for the provision of personnel for construction works.
• The reverse charge mechanism means that the VAT is levied on the recipient of the supply, not the supplier.
• The recipient cannot claim a deduction for VAT incorrectly charged by the supplier.
• Payment on a G-account is not relevant in this case.
• The taxpayer’s argument that the assessment should be reduced due to VAT correction in a previous year is rejected.
• The taxpayer’s claim of reliance on a 2012 report is not accepted as it does not establish a legally enforceable expectation.

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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