Court Rules on VAT Calculation for Car Sale to Director/Shareholder: No Abuse of Rights Found

• VAT Taxable Amount Determination: The Court of Appeal of Den Bosch ruled that the VAT taxable amount for a car sold by a BV to its DGA is based on the sale price (€2,642), not the appraised value (€25,016), as there is a direct link between the sale price and the delivery.
• No Abuse of Rights: The Court found no abuse of rights despite the low sale price, as there was no artificial arrangement designed to gain a tax advantage. The sale price reflects a subjective value for VAT purposes.
• Disguised Dividend Exclusion: The Court ruled that the difference between the appraised value and sale price, considered a disguised dividend, is not part of the VAT taxable amount since it lacks concrete quid pro quo for a direct link.

Source:

• uitspraken.rechtspraak.nl
• Taxence
• Taxlive

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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