- In a bankruptcy case, if the estate’s funds are insufficient to cover the trustee’s salary, the Tax and Customs Administration can immediately offset the input VAT deduction on the unpaid portion of the trustee’s salary with a VAT correction for non-payment within the same period.
- X BV, a bankrupt company, deducted input VAT on the trustee’s salary, but the Tax and Customs Administration largely denied the refund, applying a correction for the unpaid portion as it was clear the estate balance was insufficient.
- The Court of Appeal ruled that since the non-payment was evident when the salary was determined, the VAT on the unpaid amount became due again in the same period, thus justifying the Tax and Customs Administration’s immediate offset rather than a full refund followed by a later correction.
Source BTW Jurisprudentie
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