A holding company charges costs on to its participations. Keeping participations is not an economic activity that leads to VAT-taxed services. The holding company has to make plausible that it adds value to the services or does or omits to do something. Because the holding company does not make this plausible, the holding company is not a VAT entrepreneur when charging costs. The holding company cannot deduct the VAT on the costs, according to the Supreme Court. The Supreme Court rules in accordance with the earlier judgment of the Court.
Source: Our contributor – Van Vilsteren BTW Advies
Latest Posts in "Netherlands"
- Settlement on VAT Revision for City Office Limits Refund, Court Awards €33,105 Plus Statutory Interest
- Dutch Court: Fiscal Representation Cannot Be Required for VAT Zero-Rate Where Mutual Assistance Exists
- Supreme Court Refers VAT Deduction Dispute on Mixed Costs in Financial Instruments to Hague Court
- No VAT Deduction Allowed for ICT Manager’s Mobile Phone Bundles, Court Rules
- No Penalty for Lack of Intent in Dutch VAT Non-Payment, Supreme Court Rules
