Incorrect Application of Zero Rate; Internal Compensation; Court Decision, 8 November 2023

• X is a dealer of exclusive Mercedes cars and uses a hire-purchase construction.
• X applied the zero rate incorrectly for the sale of one car and is therefore liable for €12,699 in VAT.
• The court ruled that X is a VAT entrepreneur and is entitled to a refund of the VAT charged to her.
• The court accepted X’s claim for internal compensation, reducing the tax assessment to €12,699.
• The penalty was annulled because it was imposed in violation of the ne bis in idem principle.

Source: nlfiscaal.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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