- Finding of VAT Fraud: The Supreme Court determined that there was sufficient evidence of “incorrect or incomplete” VAT return filings by a group of Dutch legal entities and five brothers, who were involved in fraudulent activities concerning the zero VAT rate for metal scrap deliveries to the UK.
- Involvement and Sentencing: The court highlighted that the group knowingly issued invoices to various British companies, aware that these companies would not fulfill their VAT obligations. The involved parties received sentences of 27 months in prison (with part suspended) and fines of €100,000, reflecting their roles in facilitating intra-EU VAT fraud.
- Rejection of Appeal: X’s argument in cassation, claiming that mere non-payment of VAT down the chain was insufficient for the loss of the right to deduct input VAT, was rejected by the Supreme Court. The court affirmed that the group should not have applied the zero rate, as the invoices were deliberately issued to unknown parties rather than actual customers, reinforcing the ruling against them.
Source Taxlive
