Court Gelderland Ruling: Was the Zero Rate Rightly Applied Amidst Fraud Chain Concerns?

• The court assesses whether the VAT refund for October 2020 was set too low.
• The main issues are whether trust was established by a letter dated June 9, 2020, regarding a regular customer, whether the zero rate was correctly applied to transactions with certain companies, and whether the taxpayer should have known about involvement in a fraud chain.
• It is undisputed that the taxpayer reviewed transaction documents beforehand, followed certain procedures, and the inspector proved the transactions were part of a fraud chain, but the taxpayer was unaware of the fraud.
• The zero rate applies to goods transported to another EU state if VAT is charged there, and the taxpayer must prove this.
• The zero rate is valid if supported by documentation showing goods were transported to another state, and the documents must be suitable to prove this.
• The Secretary of Finance stated that evidence of transport to another state can be shown through available administrative data.

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.

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