- Incorrect Application of Margin Scheme: The District Court of Noord-Holland ruled that X BV incorrectly applied the margin scheme to goods purchased from a German supplier, as the supplier had not utilized the margin scheme for these transactions.
- Audit Findings: An audit revealed that the German supplier had purchased the goods with VAT and supplied them intra-Community without applying the margin scheme, leading to additional VAT assessments exceeding €1.6 million, including penalties and interest.
- Court’s Rationale: The court determined that the German supplier did not qualify as a supplier under the relevant provisions of the VAT Act, rejecting X’s argument for applying the margin scheme by analogy, and ultimately dismissed X’s appeals while reducing fines for delays in the process.
Source Taxlive
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