VAT on Municipal Household Packaging Waste Collection: Service for Consideration or Government Activity?

• The case concerns whether a municipality’s collection and separation of household packaging waste qualifies as a taxable service under VAT law.
• The argument that the municipality only acts under a legal obligation and not in a contractual relationship with the packaging industry representative ([A]) is rejected.
• The court finds that [A] acts as a representative of the packaging industry and collectively fulfills its obligations, not merely as a financier.
• The municipality’s activities, after entering into agreements from 2020, are considered services performed for consideration within a legal relationship.
• The claim that there is no identifiable recipient or that the service is not for consideration is dismissed.

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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