No Penalty for VAT Fraud Involving Other EU States, Supreme Court Rules Under Article 67f AWR

• The Supreme Court ruled that no penalty can be imposed under Article 67f AWR when the zero VAT rate is denied due to involvement in VAT fraud.
• The additional tax assessments remain, but the penalties are annulled.
• For a penalty under Article 67f AWR, intent or gross negligence must relate to non-payment of tax owed in the Netherlands.
• In this case, the accusation concerned VAT evasion in another EU member state, which is not punishable under Article 67f AWR.
• A broad interpretation of Article 67f AWR is not allowed due to the principle of legality (Article 7 ECHR).

Source: nlfiscaal.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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