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
