Tax Assessment Upheld for Municipality Due to VAT Abuse in “School Model” Construction Scheme

• Municipality X acted as the formal client for school renovation to obtain a VAT benefit of about €420,000.
• The tax inspector imposed additional assessments, arguing X was not the real recipient, did not perform economic activity, and abused the law.
• The court ruled X was the recipient and engaged in economic activity, rejecting the inspector’s other arguments.
• However, the court agreed there was abuse of law, as the main purpose was to gain tax advantage.
• The additional tax assessments were upheld.

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.

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