Ruling on VAT liability for separate collection of packaging waste by municipality

• The municipality X is responsible for the separate collection or collection and sorting of packaging waste from household waste.
• X receives a compensation for these activities but has not paid VAT on these payments.
• X has been issued with VAT assessments as a result.
• X has also claimed a contribution from the BCF for the VAT incurred on the costs of these activities, but these contributions have been reclaimed from X.
• The court in The Hague rules that X provides a service to the packaging industry, which is subject to VAT.
• X’s argument based on the principle of legitimate expectations is rejected.
• The court also rejects X’s claim that the reverse charge mechanism applies.
• The appeal is dismissed.

Source: nlfiscaal.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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