Hague Court rules that lower fee than agreed upon is the basis for VAT

• The inspector wrongly assumed the regular management fee instead of the reduced fee actually paid.
• X provides management services for A bv.
• The management fee was reduced when A bv came under financial supervision.
• X included the reduced fee in the VAT returns for 2015 and 2016.
• The inspector claims that the regular fee should be considered as invoiced.
• X argues that VAT is only due on the actual invoiced revenue.
• The court ruled in favor of the inspector, but the higher court overturned the decision.
• The higher court states that the actual invoiced amount should be used when a lower amount is charged.
• X’s appeal is successful.

Source: taxlive.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.