No right to a VAT refund, costs are not related to previous business activities

No right to a VAT refund, costs are not related to previous business activities

A had been a partner at an accounting and consultancy firm since 1993. On March 26, 1999, A contributed his share in the partnership to X BV. According to the Chamber of Commerce, X BV’s activities consist of exercising an accountancy and tax consultancy practice. A is the sole shareholder and one of the three directors of X BV. In the years after the establishment of X BV, A developed health problems, which meant that he was gradually able to work less and less until he was declared completely unfit for work at some point. At the end of 2003, A was fired by the partnership. His last working day was on December 10, 2003. X BV subsequently started proceedings against the partnership to obtain A’s profit share. In 2006 X BV received an amount of € 800,000 and in 2007 € 900,000. After that, a claim of more than € 1,000,000 remained.

Source BTW jurisprudentie

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