Application of zero rate for expensive cars paid in cash rightly refused (VAT fraud)
- Court Ruling on VAT Fraud: The District Court of The Hague ruled against entrepreneur A, confirming that she could not apply the zero rate for turnover tax on the sale of three cars to a German customer, as she was aware or should have been aware of her involvement in VAT fraud.
- Key Evidence of Negligence: The court highlighted several critical factors leading to this conclusion: poor administration with missing documentation, the unusual cash payment of €494,000 without receipts, and the use of invoices from a previously sold company, along with incomplete consignment notes.
- Knowledge of Ongoing Investigations: The court noted that A was aware of an investigation into her partner’s business concerning the same German customer, which further indicated her potential knowledge of the fraudulent activities in the transaction chain.
Source BTW jurisprudentie
- The case involves whether the additional VAT assessment was correctly imposed on the claimant.
- The dispute centers on whether the claimant is entitled to apply the zero rate for the delivery of three cars to Germany.
- It is undisputed that there is a missing trader in the trade chain, indicating VAT fraud.
- The court ruled that the application of the zero rate was rightly denied by the defendant.
- The claimant’s administration, cash payments, and incomplete CMRs suggest awareness or should have been aware of VAT fraud.
- The claimant’s administration lacked contracts and correspondence with the German company.
- Cash payments totaling 494,000 euros were deposited into a bank account linked to the claimant.
- No receipts for cash payments were found, and the payer’s identity and nationality are unclear.
- Three CMR waybills were submitted, but they were incomplete and signed by the claimant.
- The claimant stated they did not arrange the transport of the cars, which was supposedly done by the German company.
Source: uitspraken.rechtspraak.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.
