- The taxpayer’s trading business was considered a commercial enterprise and therefore an activity that fell under the definition of Section 1(1) of the LVO.The fact that the activity was subsequently assessed as a hobby under income tax law was not decisive for the assessment under VAT law.According to Section 6 LVO, a hobby in the VAT sense can only exist for activities within the meaning of Section 1(2) LVO, but not for other activities.Therefore, in the case of the taxpayer, the assessment of VAT was made in accordance with the declaration and the notice concerning VAT for 2016 was rightly issued by the tax authority.
Source: news.bloombergtax.com
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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