- Court of Appeal Ruling: The Court of Appeal of ‘s-Hertogenbosch ruled that the tax inspector failed to provide sufficient evidence of fraud concerning certain watch transactions by X BV, thus rejecting claims of VAT payment obligations not being met.
- Background of the Case: X BV, involved in the trade of trucks and cars, faced an additional VAT assessment following an audit that scrutinized their sales of exclusive watches and input VAT deductions related to car purchases. The initial ruling found that X BV could not justify applying the zero rate for some watch transactions.
- Assessment Adjustments: The Court of Appeal reduced the additional VAT assessment by €8,610, concluding that the inspector did not establish that X BV was aware of any fraud or VAT obligation failures at the time of claiming input VAT deductions, and also adjusted the assessment related to car transactions.
Source Taxlive
