- Transaction & Issue: A Dutch business (VOF) sold a sport horse to a UAE buyer applying the 0% export VAT rate, but before its physical export outside the EU, the horse was taken to Portugal for training and entered into six competitions.
- Court’s Finding on First Use: The Court of Appeal of ‘s-Hertogenbosch held that while regular training to maintain physical condition is permissible, competing in events constituted the horse’s actual “first use” in accordance with its purpose within the EU.
- Final Ruling: Because this EU-based competitive use severed the necessary material and temporal link between the sale and the subsequent export, the tax authority was justified in refusing the zero VAT rate and issuing additional VAT assessments.
Source BTW Jurisprudentie
Latest Posts in "Netherlands"
- Dutch E-Invoicing Roadmap (ViDA) and Practical VAT Invoicing Obligations
- VAT exemption for childcare also applies to self-employed pedagogical employee
- Bicycle maintenance package when selling a bicycle, independent service is taxed at a reduced VAT rate
- Netherlands: Dutch VAT Cost-Sharing Exemption Ruling Challenges IT Service Exclusions
- Netherlands: VAT Exemption Dispute for Independent Childcare Worker
