Denial of Zero Rate and VAT Deduction for Alleged Sale of Sports Shoes

• A company sold a batch of sports shoes to a German company in the third quarter of 2018
• The company applied a zero rate and requested a refund of input tax
• The tax inspector refused the input tax refund and zero rate application
• The inspector argued that the sports shoes were not transported to Germany and that the company would not pay the purchase invoices
• The court agreed with the inspector’s arguments
• The inspector filed an incidental appeal against the court’s decision to cancel the penalty for gross negligence
• The court found that the inspector had provided enough evidence of gross negligence, so the penalty was justified

Source: fiscount.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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