- The Court of Appeal of The Hague upheld the tax inspector’s decision to refuse the zero VAT rate for X BV, citing insufficient measures taken by the company in response to indications of fraud within its customer base.
- X BV, a wholesaler of ferrous metals, was found to have neglected its responsibilities by failing to investigate its buyers adequately, delivering goods to addresses different from the business location, and accepting third-party payments from non-active traders.
- The court emphasized that businesses dealing in high-risk goods, like X BV, are expected to exercise heightened vigilance against fraud, and the lack of action to mitigate these risks justified the additional VAT assessments imposed for the specified months.
Source Taxlive
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