- Municipality X participates in the joint Avri scheme from December 1, 2015
- Avri was founded for waste removal and processing, management of public space and supervision and enforcement.
- Avri is responsible for the collection of household waste.
- Producers and importers of packaging have set up foundation A for Extended Producer Responsibility
- Dispute over whether the contribution of foundation A to municipality X is subject to VAT.
- The Gelderland Court rules that the contribution is exempt as a financial contribution to the costs of carrying out a task under the Waste Management Act
- There is no question of a legal relationship in which X provides a service to an identifiable third party in return for remuneration from foundation A.
- If there were a service for consideration, there would be no economic activity
- Municipalities carry out activities partly by using government prerogatives, not by market participants.
- Municipalities only run the risk of loss and have no prospect of profit, not the aim of providing a service to municipalities
- For a market participant, it is an economically non-viable activity.
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.
