VAT Fraud: Court Rejects Zero Rate, Emphasizes Proof Burden

Court of Appeal The Hague ruled on January 9, 2025.
The court considered the Law on Turnover Tax 1968.
The court found that UK customers of the interested parties may have committed VAT fraud.
The interested parties did not take sufficient steps to prevent involvement in VAT fraud.
The zero rate on intra-Community supplies to UK customers was correctly denied.
Tax authorities must prove VAT fraud with objective evidence.
The national court must determine if the tax authorities have provided objective evidence.
The right to deduct can only be denied if the taxpayer committed VAT fraud or knew or should have known about the fraud.
The right to deduct can only be denied if proven beyond reasonable doubt, not through assumptions.
Tax authorities must demonstrate VAT fraud and the taxpayer’s involvement beyond reasonable doubt.
Assumptions or presumptions that shift the burden of proof are prohibited.
National authorities and courts must deny rights in cases of fraud or abuse.

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.