- Tax authority imposed additional VAT assessment of €224,033 on fiscal entity A for 2020, primarily correcting input tax deduction for two parts of a redevelopment project including CP1 which was an atelier with business residence
- For CP1, parties opted for taxable rental under VAT law, signing a rental agreement with a couple who declared permanent use for purposes with full or nearly full VAT deduction rights, though the actual layout included multiple residential floors
- The question was whether input tax deduction correction for CP1 was justified, since taxable rental requires tenant to use property 90% or more for taxable services and parts cannot be used as residence
- Gelderland Court ruled the appeal founded mainly because tax authority allowed CP5 correction in appeal phase, reducing assessment to €97,213, but upheld CP1 correction since entity A failed to prove taxable use of atelier and storage spaces
- Default penalty was maintained but reduced 15% to €4,686 due to reasonable time limit violation, with court finding no arguable position existed as the case involved factual assessment rather than legal interpretation
Source: btwjurisprudentie.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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