- Failure to File VAT Return: The Supreme Court ruled that X’s failure to file a VAT return justified the Court of Appeal’s decision to reverse the burden of proof, requiring X to demonstrate eligibility for VAT deductions based on the submitted tax return.
- Legal Framework Affirmed: The Court confirmed that the adjustment of the burden of proof does not violate EU law principles and maintains that national legislation is compatible with standards of equivalence, effectiveness, proportionality, and fiscal neutrality.
- Referral for Further Assessment: The case has been referred back to the Amsterdam Court of Appeal to determine whether X can convincingly substantiate the claims for input tax deductions, reflecting the heightened evidentiary requirements imposed by the Supreme Court’s ruling.
Source Taxlive
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