- A Dutch court ruled that the VAT zero rate for exports outside the EU can be denied if actual export is delayed too long.
- In this case, a €150,000 horse sold to a U.S. buyer stayed in the Netherlands for ten months, competed in races, and only later left the EU.
- The court held that the required link between the sale and export was broken, so the seller had to pay €31,500 VAT plus a penalty.
- For the zero rate to apply, there must be a close timing and factual connection between delivery and export, and the goods should leave the EU unused.
- For horses, using the animal within the EU after sale generally means the transaction is treated as a taxable domestic supply, not an export.
Source: btwinstituut.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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