Abnormally Low Car Sale Price to Director Can Lead to VAT Abuse and Tax Correction

• Selling a car by a company to its director-shareholder (DGA) at an abnormally low price can constitute VAT abuse.
• The tax authority may correct the VAT base to the market value in such cases.
• Courts differed: Amsterdam found abuse and corrected the VAT base; ’s-Hertogenbosch did not.
• The Advocate General (A-G) supports the tax authority’s position, stating even a single transaction can be abuse.
• The disguised dividend is not considered part of the VAT base unless there is abuse of rights.

Source: nextens.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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