Court Ruling: Is the Taxpayer an Entrepreneur for VAT and Are Tax Assessments and Fines Justified?

• The court considered whether the interested party qualifies as an entrepreneur for turnover tax purposes and if the additional tax assessments and penalties were rightly and correctly imposed.
• The definition of “entrepreneur” in the 1999 Turnover Tax Ordinance was expanded in 2012 to include those who exploit assets for sustainable income, such as renting out property.
• Merely owning an asset that generates income does not automatically make one an entrepreneur; the activity must be a sustainable economic activity, not incidental.
• The court found that the interested party, who owns three properties, is engaged in sustainable economic activity and is therefore considered an entrepreneur for turnover tax purposes.

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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