No refund of import VAT on show jumping horse: prize money and subsidies do not constitute an economic activity

• Importing a competition horse does not give entitlement to a VAT refund if participation is solely for prize money and subsidies, as these do not constitute taxable economic activities.
  Subsidies and prize money
• are not considered payment for a service; therefore, there is no direct and immediate link between import costs and taxable activities.
• Without demonstrated revenue from sponsorship contracts or other taxable services, the import VAT is not deductible, although the court awarded damages for exceeding the reasonable time limit.

Source BTW Jurisprudentie

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