- A Dutch court held that the VAT zero-rate for export was correctly denied on the sale of a sport horse to a UAE buyer because the horse was trained and entered in competitions in Portugal before being physically exported to the UAE.
- The court ruled that for the export exemption/zero-rate, the first use or consumption of the goods must take place in the destination third country; competing in EU events constituted first use within the EU.
- Training to keep the horse in good condition did not by itself defeat the zero-rate, but actual competition use did.
- As a result, the court found that the required material and temporal link between the sale and the export was broken, supporting the VAT assessment.
Source: btwjurisprudentie.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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