- Amsterdam Court of Appeal held that a municipality may include deductible VAT as a “cost related to the service” when calculating the revenue limit for sewer and waste charges, even if it does not actually burden the municipal budget because of the VAT Compensation Fund.
- The fund’s reimbursement does not need to be treated as a related revenue or negative cost.
- Otherwise, the statutory rules would lose their purpose.
- The court said including the VAT afterwards does not alter the municipal budget or upset the balance between costs and revenues.
- X’s appeal was rejected.
Source: taxlive.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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