- The Hedging Adjustment Payment does not qualify as a negative component of availability fees for VAT purposes
- X bv entered into a DBFM agreement with the Ministry of Infrastructure and Water Management in 2001 for the construction and maintenance of the High-Speed Line in the Netherlands
- Hedging Adjustment Payments are separate from availability fees and are based on the CLF EURIBOR rate
- X bv paid a Hedging Adjustment Payment to the Ministry in 2017, claiming VAT deduction which was later assessed by the tax authority
- The Amsterdam Court ruled that the Hedging Adjustment Payment is not directly related to VAT-taxable activities and therefore VAT was correctly assessed
- X bv’s appeal was dismissed by the Court.
Source: taxlive.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.
