- Supreme Court’s Directive: The Supreme Court ruled that the Court of Appeal should have considered X BV’s argument that the fees for securities transactions could be calculated based on the gross trading results over a specified period, highlighting the need for a thorough examination of this method.
- Background on X BV’s VAT Exemptions: X BV, which engages in market making and trading financial instruments, operates under VAT-exempt supplies as defined by the VAT Act 1968. The company previously agreed with tax authorities on how to determine VAT deductions for mixed costs, but sought adjustments in 2016 to include remuneration from its foreign subsidiaries in the pro rata calculation for higher input tax deductions.
- Guidelines for Court of Appeal: The Supreme Court referred the case back to the Court of Appeal of The Hague and provided specific guidelines on determining the taxable amount for securities transactions and evidentiary requirements under the VAT Act. This emphasizes the importance of substantiating claims for VAT deductions with appropriate numerical data and allocation methods.
Source Taxlive
Latest Posts in "Netherlands"
- No Penalty for VAT Evasion Aimed at Another EU Member State, Supreme Court Rules
- No Penalty for VAT Fraud in Other EU State Without Intent to Evade Dutch VAT
- No Penalty for VAT Fraud Involving Other EU States, Supreme Court Rules Under Article 67f AWR
- VAT Deduction for Home Office Possible, Even with Limited Private Use: Court Ruling Explained
- Supreme Court Affirms VAT Fraud Conviction: No Room for Defense in Carousel Scheme
