Provision of maternity care staff not VAT exempt, but annulment of misdemeanor penalty

• Court of Appeal Ruling on VAT Assessment: The Court of Appeal upheld the additional VAT assessment against X bv, confirming that the maternity care activities provided do not qualify for VAT exemption under the medical services provision, and determined that X bv and the other bv do not constitute a VAT group due to lack of financial or organizational ties.
• Reduction of Additional Assessment: While the additional VAT assessment remains, it will be partially reduced as turnover from December 2016 was incorrectly included in the calculation, as the loan of maternity nurses was only executed due to the absence of care contracts at that time.
• Annulment of Misdemeanor Fine: The Court annulled the misdemeanor fine imposed for gross negligence, finding that the inspector failed to provide sufficient evidence of gross negligence on the part of X bv, particularly since the company acted on the advice of an expert advisor regarding VAT regulations. The inspector was ordered to pay the costs associated with the appeal.

Source Taxence

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Court of Appeal The Hague: No VAT Fiscal Unity, Services Not Exempt, Penalty Elements Unproven

• The court ruled on a case involving tax law and personnel provision in maternity care.
• There was no fiscal unity for VAT purposes between the involved parties.
• The plaintiff failed to prove financial and organizational interdependence with the other company.
• The court found no exemption for the services provided under the relevant tax law.
• The elements for imposing a penalty were not convincingly demonstrated.

Source: uitspraken.rechtspraak.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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