- Court Ruling on VAT Zero Rate: The Zeeland-West-Brabant District Court upheld the inspector’s decision to levy additional VAT due to the incorrect application of the zero rate for exporting a horse to the United Arab Emirates, ruling that X VOF failed to demonstrate that the export was directly linked to the delivery.
- Rejection of Legitimate Expectations Argument: The court dismissed X VOF’s claims based on the principles of legitimate expectations and previous policy, stating that there was no established policy or legal conflict that justified the application of the zero rate for this transaction.
- Adjustment of Assessments and Penalties: While the court confirmed the rejection of the zero rate, it agreed with X VOF that the tax base for the additional assessments should include turnover tax, as the tax could no longer be passed on to the buyer. Consequently, the court reduced the assessments and adjusted the default penalty proportionally, ruling that X’s appeal was well-founded.
Source Taxlive
