No VAT Deduction for Start-Up Holding Due to Lack of Economic Activity Evidence

• Hof Arnhem-Leeuwarden ruled that the management services agreement was only created and signed in 2021.
• X BV was established in April 2018 and focuses on international sports clubs and athletes.
• X BV deducted VAT in 2018, but the inspector claimed it was not a VAT entrepreneur.
• The court initially sided with X BV, recognizing its activities as economic.
• X BV was not a pure holding as it managed marketing, sales, HR, and acquisitions.
• The inspector appealed, and the higher court found no evidence of services being provided for a fee in 2018.
• X BV did not have the right to deduct VAT and was not part of a fiscal unity with other companies.
• The inspector’s appeal was successful.

Source: taxlive.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.