Inadmissible to claim input tax deduction due to lack of evidence of opting for taxable rental

• A taxpayer (X) has been issued a tax assessment with a penalty for VAT.
• It was found in an audit that invoices for rental of storage space were issued to a foundation by company B.
• The tax authority argues that X is not the recipient of these services and therefore not entitled to deduct input VAT.
• The court ruled in favor of the tax authority, stating that the deduction of input VAT was correctly corrected and the penalty is appropriate.
• The higher court (Hof Den Haag) confirms the ruling of the lower court.
• X has not provided sufficient evidence that there was an option for taxable rental in the written agreement.
• The option for taxable rental agreed between B and A (the director of the foundation) cannot be applied to the agreement between B and X.
• Therefore, VAT was incorrectly charged on the rent and X wrongly deducted input VAT on the invoices.

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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