- Advocate General’s Conclusion: Advocate General Ettema concluded that transactions involving nickel do not qualify as an economic activity, referencing the Court of Justice of the European Union’s case law regarding tax liability for holding shares, which generally excludes such transactions from economic activity.
- Background of the Case: X, an entrepreneur in Germany, purchased a significant quantity of nickel in the Netherlands with the intention to sell it later. The Court of Appeal of ‘s-Hertogenbosch initially ruled that X could deduct the VAT charged as input tax, viewing the purchase as part of his economic activities.
- Recommendation to the Supreme Court: The Advocate General advised the Supreme Court to rule in favor of the State Secretary’s appeal, stating that since none of the exceptions to the established doctrine apply, X cannot deduct the input tax related to the nickel purchase, reinforcing the non-economic activity classification.
Source Taxlive
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