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Municipality not liable for VAT on waste fund contribution

  • Municipality X collected different categories of household waste according to its waste ordinance
  • Stichting A was established by producers and importers to comply with Extended Producer Responsibility
  • Stichting B monitored material flows on behalf of Stichting A
  • A framework agreement was made between the government, packaging industry, and municipalities for waste management
  • Municipality X had a standardized agreement with Stichting B for waste management
  • Municipality X received compensation from Stichting A for waste management activities
  • Municipality X did not pay VAT on the compensation received from Stichting A
  • In 2019, it was determined that waste management services provided by municipalities were subject to VAT
  • Municipality X had to correct VAT deductions made on waste management costs for the years 2015-2019.

Source: futd.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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