- The “koepelvrijstelling” is a VAT exemption allowing collaborations (like municipal partnerships) to provide services to their members without charging VAT, under specific conditions.
- The main benefit for participants is cost savings, especially on personnel costs, as they do not pay VAT on services where VAT is normally non-deductible or non-compensable.
- Without the exemption, participants may face increased costs due to non-deductible VAT, particularly for services like cemetery operations or for entities like water boards.
- With the exemption, only actual costs are paid, with no additional VAT, preventing extra financial burden.
- However, the exemption means the partnership cannot deduct VAT on its own costs, which then becomes part of the contributions charged to members.
Source: efkbelastingadviseurs.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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