Dutch Court: Fiscal Representation Cannot Be Required for VAT Zero-Rate Where Mutual Assistance Exists

• The Hague Court of Appeal ruled that a Dutch BV with a foreign-resident director was not established in the Netherlands for VAT purposes, as key decisions were made abroad.
• The company traded excise goods stored in the Netherlands and applied the zero VAT rate, but the Dutch tax inspector challenged this due to lack of a fiscal representative.
• The court found the fiscal representative requirement for zero-rating to be unlawful discrimination against non-resident taxpayers, citing EU law and existing mutual assistance agreements.
• The court annulled all VAT assessments and interest, ordering the inspector to pay procedural costs and court fees.
• The ruling has broader implications, challenging the Dutch practice of requiring fiscal representation for non-resident businesses entitled to the zero VAT rate.

Source: uitspraken.rechtspraak.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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