Dutch Court Denies VAT Deduction for Crypto Platform Over Lack of Direct Service to Non-EU Clients

• The Hague District Court ruled against a crypto platform’s claim to deduct input VAT for services provided to non-EU customers.
• The court found that the company only received services from non-EU entities like Bittrex and did not provide any services in return.
• The court emphasized that VAT deduction requires a direct legal and economic relationship with payment for services rendered.
• The company’s appeal was dismissed, and the additional VAT assessments by the Dutch Tax Authority were upheld.
• The ruling highlights that VAT deduction rights depend on actual consideration for services, not just business with non-EU entities.

Source: vatabout.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.

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