Zeeland-West-Brabant District Court’s ruling:
- Lack of Legitimate Expectation: The court ruled that X BV cannot claim a legitimate expectation from the VAT refund because it failed to inform the tax inspector that only exempt services were provided by the fiscal unity.
- Additional VAT Assessment: The inspector imposed an additional VAT assessment on X BV for the period from 12 December 2019 to 31 December 2021, reversing the input VAT deductions due to the fiscal unity’s provision of solely exempt services.
- Rejection of Appeal: The court found no violation of the principle of legitimate expectations, stating that X BV’s communication did not clarify the nature of the services provided, leading to the conclusion that the appeal against the additional assessment was unfounded.
Source Taxlive
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