The Court of Appeal of ‘s-Hertogenbosch ruled that the purchase of a consignment of nickel by an ICT entrepreneur is considered an economic activity due to the intended subsequent sale. This ruling is based on the Kostov judgment, which also applies to legal persons. In a specific case, a German entrepreneur, X, bought a consignment of nickel in the Netherlands with the intention of selling it later. The court ruled that X is entitled to deduct the VAT charged as input tax for the purchase of the consignment. This is because X is considered a VAT entrepreneur due to his ICT activities and must be regarded as a trader for the purchase of the nickel batch. Therefore, the VAT charged is deductible as input tax.
Source Taxlive
Latest Posts in "Netherlands"
- Impact of 2027 Policy Change on Home Batteries and VAT for Solar Panel Owners
- Supreme Court to Decide Tax Status of Paved Parking Lot: Built or Unbuilt Land?
- VAT Implications for ‘Free’ Online Services: Legal Challenges and Potential Impact on SMEs
- Court Denies Tax Deduction for Family Business Succession Advisory Costs as Private Expenses
- No deduction of input tax for private advisory fees shareholders
