- The Tax Construct: Thrift store operator Stichting X attempted to apply the VAT margin scheme (Article 28d of the Dutch VAT Act) to second-hand goods donated by individuals by introducing standard terms stating that goods were nominally “purchased” and the purchase amount was simultaneously donated back and settled.
- Lack of Consideration (Bezwarende Titel): The Arnhem-Leeuwarden Court of Appeal ruled that the donors did not supply goods for consideration, as they received no actual counter-performance or payment, never actively expressed intent to enter into a sales contract, and the foundation deliberately avoided publicizing that it “bought” goods.
- The Ruling: The court held—adding obiter dictum that even if donors had agreed to the terms, the artificial mechanism was explicitly designed to ensure no payment ever occurred—that the deliveries were free of charge (om niet), precluding the use of the margin scheme and upholding the earlier district court judgment.
Source Taxlive
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