Organization of race training services is composite service for VAT purposesGerman Race Training at Zandvoort Subject to German VAT Despite Dutch Location

 

• Composite vs separate supplies: The Court held that the race training organised for German customer D qualifies as a single composite service, whereas the organisation of the car race for German customer A consists of separate services, each with its own VAT treatment.
• Place of supply and VAT outcome: The composite race training service was deemed supplied in Germany for VAT purposes, meaning German VAT was not due as charged; conversely, the separate services provided to customer A were supplied in the Netherlands and therefore subject to Dutch VAT.
• Key reasoning: Variations in individual elements (e.g. accommodation or meals not provided to all participants) were insufficient to break the overall indivisible nature of the race training event, which was tailored and supplied as one total performance.

Source Taxlive

 

---

German Race Training at Zandvoort Subject to German VAT Despite Dutch Location

• A German company, X, organized car racing events, including a race and a race training at Zandvoort in 2019.
• X invoiced Porsche Deutschland and Porsche Dortmund with German VAT for these events.
• X did not declare or pay Dutch VAT for these services in its Dutch VAT returns.
• X requested something (not specified) in its Dutch VAT returns for the third and fourth quarters of 2019.

Source: futd.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.

---

---