Netherlands: Shadow Accounting Triggers Reversed Burden of Proof and VAT Assessments

• The Amsterdam Court of Appeal held that the taxpayer failed to file the required VAT returns, triggering reversal and shifting of the burden of proof.
• A handwritten shadow ledger found during a customs inspection showed substantially higher sales and tax due than reported, including unreported card turnover of €82,472 for one shop.
• The taxpayer had no cash administration and did not retain cash register data, with 22% to 66% of gross sales per shop left undeclared.
• Twelve VAT assessments for January 2018 through February 2019 were upheld; the court found the tax authority’s estimates reasonable because they were based on the taxpayer’s own records and filed returns.

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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