- The Dutch Supreme Court ruled that surfing lessons provided from furnished units on a beach can apply a reduced VAT rate of 9 percent.
- The case highlights the importance of understanding client activities and the lengthy process of obtaining tax authority and court approval.
- VAT rules for sports services are complex, with non-profit organizations often exempt and profitable businesses subject to VAT.
- The court case focused on whether the beach units could be considered sports accommodations.
- The Supreme Court decided that surfing lessons should be viewed as a whole service, including preparation and debriefing, not just the activity in the sea.
- This ruling is significant for businesses in determining correct VAT treatment and understanding the scope of services.
Source: irglobal.com
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.
