- A company must pay reverse-charge VAT if it uses a VAT identification number, even without engaging in business activities.
- The court confirmed the tax authority’s imposition of additional assessments and fines.
- Since 2009, the company only holds shares in a Croatian firm and performs no other activities.
- In 2010, it received a VAT number based on its registration as a holding company.
- Between 2016 and 2020, it received legal services from foreign parties, using its VAT number, causing VAT to shift to the Netherlands.
- The company failed to declare and pay this reverse-charge VAT, leading to additional assessments and fines.
- The court ruled that using the VAT number makes the company a business for VAT purposes, requiring it to declare and pay the VAT.
- The company’s arguments against the tax authority’s actions were rejected.
- The company could have requested the withdrawal of the VAT number but did not.
- The appeal was dismissed, but fines were reduced due to a delay in proceedings.
Source: taxence.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.
