- Limited VAT Deduction for Asset Management: The court ruled that a private limited company (BV) is not entitled to fully deduct input VAT on the asset management of its securities portfolio, as this portfolio does not qualify as a direct, sustainable, and necessary extension of its taxed advisory services.
- Non-Economic Activity Determination: The court found that merely holding a securities portfolio does not constitute an economic activity for VAT purposes, as the BV failed to demonstrate that the portfolio directly supports its advisory services or future economic activities.
- General Costs Deduction Adjustments: For general costs, the inspector applied a 50% pre-pro-rata deduction due to the split between economic and non-economic activities, which the court deemed acceptable. The BV did not provide sufficient evidence to justify a higher deduction percentage, and the additional assessments were upheld.
Source Taxence
