Correction of Deducted VAT and Incorrect Application of Zero Rate

• The Court of Appeal in The Hague has ruled that the deduction of VAT has been correctly corrected.
• The zero rate has been incorrectly applied as it is not credible that the goods have left the Netherlands.
• The penalty has been correctly imposed.
• The court agrees with the lower court’s decision to correct the deduction of VAT for invoices from BV 2.
• The court finds that the taxpayer did not have the funds to pay BV 2 and could not expect payment from GmbH 1.
• The court does not find any evidence that the taxpayer intended to pay the invoices from BV 2 or reimburse GmbH 3 for the advanced amounts.
• The court states that the invoice to GmbH 1 was not uncollectible in the relevant period.
• The court concludes that a refund under article 29, paragraph 1, of the VAT Act is not possible for the invoice to GmbH 1 in the relevant period.

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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