- The District Court of Zeeland-West-Brabant denied a company the right to deduct VAT on advisory costs related to a family business succession and share transfer.
- The Court found that the advisory services primarily benefited the shareholders’ private interests, not the company’s taxable business activities.
- For VAT deduction in succession or reorganization cases, costs must directly serve the company’s operational and taxable activities, not just changes in share ownership.
- The judgment aligns with Dutch and EU case law, which distinguishes between business-related and shareholder-related expenses.
Source: vatabout.com
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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