Court Rules Private Equity Fund Not Eligible for VAT Deduction Due to Lack of Entrepreneurship

• A private equity fund is not considered a VAT entrepreneur and cannot deduct VAT on purchased advisory services.
• The fund failed to prove that services were provided for compensation in the relevant year.
• The court ruled that the fund does not qualify as a VAT entrepreneur, thus no VAT deduction is allowed.
• Agreements with Bidcos were made in 2018, not supporting the claim for 2017 costs as preliminary expenses.
• Objective data is necessary to support VAT deduction claims for preliminary costs.
• The case is under appeal, so the final decision is pending.

Source: vanoers.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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