Sale of Company Cars to Directors at Low Prices Constitutes VAT Abuse, Says Advocate General

• Selling cars by companies (bv’s) to their directors (dga’s) at extremely low prices constitutes abuse of law for VAT purposes.
• VAT should be calculated based on the appraised value, not the low sale price.
• The low sale prices were chosen solely to save VAT, lacking a real connection to the car’s value.
• Even a single transaction at an abnormally low price between related parties can be considered abuse.
• The Advocate General advises the Supreme Court to uphold the tax authority’s appeal and set the VAT base at the appraised value.

Source: taxence.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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