- Zero Rate Refusal Affirmed: The Court of Appeal of The Hague upheld the refusal of the zero VAT rate for X, a VAT group, due to established VAT fraud within the supply chains involving Y BV and British customers.
- Involvement of Y BV in Fraudulent Activities: Y BV, a wholesaler of ferrous metals, was implicated in VAT fraud related to transactions with three British customers. The court found sufficient evidence that X either knew or should have known about the fraudulent activities occurring within these supply chains.
- Additional VAT Assessment Justified: The ruling confirmed that the additional VAT assessment imposed on X for the year 2017 was warranted, as the court deemed X’s appeal against the assessment as unfounded, reinforcing the link between the fraudulent activities and the denial of the zero rate application.
Source Taxlive
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