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.

Source: uitspraken.rechtspraak.nl

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.

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