- A Dutch BV, whose DGA lives abroad and operates an alcoholic beverage wholesale business entirely within a Dutch excise warehouse, was denied a zero VAT rate by the Tax and Customs Administration, which argued the BV was a foreign taxpayer without a permanent establishment and failed to appoint a tax representative or provide customer statements.
- The Court of Appeal of The Hague agreed the BV lacked a permanent establishment in the Netherlands but ruled that the requirement for foreign taxpayers to appoint a tax representative was discriminatory.
- The Court further determined that the zero rate could not be refused based on formal requirements (like appointing a representative or providing statements) when the substantive conditions (goods in excise warehouse, not released for consumption) were met, leading to the annulment of the additional tax assessments.
Source BTW Jurisprudentie
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