- The Amsterdam High Court ruled that interest received by a notary firm for funds in its trust account is VAT exempt turnover.
- The Dutch Attorney General concludes that the notary firm does not supply services to the bank and that holding client funds in a trust account does not constitute a supply of a service.
- The case will be referred to a lower court to determine the impact of these non-economic activities on the notary firm’s VAT recovery position.
- The Dutch Supreme Court’s decision could impact businesses that receive significant interest amounts on their bank accounts.
- The Attorney General’s conclusion is a new development in the debate concerning the VAT recovery right of businesses that perform incidental non-economic or VAT exempt activities.
- The Dutch Supreme Court’s decision is expected to provide clarity on the impact of non-economic or exempt activities on the VAT recovery right.
Source: jdsupra.com
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.
