VAT due to number acquisition not deductible due to participation in fraud

Zero VAT Rate Incorrectly Applied: The Court of Appeal of Den Bosch ruled that X BV incorrectly applied the zero VAT rate for goods supplied from the Netherlands to Belgium, lacking proof of transport to Belgium.
Non-Deductible VAT Due to Fraud: The VAT due on a number acquisition in the Netherlands is not deductible for X BV because the company is implicated in VAT fraud, affecting both the goods and a consignment of oil supplied to Italy.
Insufficient Evidence for Claims: X BV failed to provide plausible evidence that VAT was levied in Italy for the oil supply, and the court deemed the justification of transporting oil as a favor to another company implausible.

Court Ruling: VAT Directive Violations, Zero Rate Conditions Unmet, Tax Reassessed, Penalties Partially Overturned

The court ruled that the conditions for applying the zero rate for intra-community supplies were not met, resulting in VAT being due.
The taxpayer argued that the assessments and penalties were wrongly imposed, claiming compliance with the zero rate conditions and denying intra-community acquisitions.
The inspector maintained that the assessments were justified due to non-compliance with zero rate conditions and lack of evidence of good faith.
The court found that the taxpayer did not provide evidence of goods leaving the country, justifying the VAT reassessment.

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.