- A balance debt for VAT at the end of the fiscal year can result in a VAT assessment for that year equal to the balance debt.
- Only a successful appeal to raised confidence can prevent this.
- A partnership has been buying watches with Spanish VAT in Spain and selling them in the Netherlands with the margin scheme, which is not allowed.
- The partnership reached an agreement with the Tax Authorities regarding the fiscal consequences of an audit for the years 2011 to 2015.
- A balance debt of €23,355 for VAT was found in the 2017 income tax return of one of the partners, leading to a VAT assessment.
- The court ruled that the VAT assessment was correctly imposed based on the balance debt.
- The partner believed that the balance debt for 2016 would be written off like the debt for 2015, but this was not stated in the agreement.
- The partner cannot claim raised confidence as there is no evidence that the inspector was obligated to include 2016 in the agreement.
- The possibility of the partnership’s bankruptcy is not relevant to the assessment.
- The court found no grounds to reduce the assessment and stated that the partnership can arrange a payment plan with the tax collector.
Source: taxence.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.
