The Hague Court of Appeal ruled that X was allowed to apply the umbrella exemption to 90% of its actions and that 90% of the additional VAT was levied in violation of EU law. X is entitled to compensation for recovery interest on this part of the additional tax.
X, a joint regulation of the municipalities of Barendrecht, Albrandswaard and Ridderkerk, applies the umbrella exemption to its performance. However, according to the inspector, X incorrectly applies the umbrella exemption. He therefore imposes additional VAT assessments on X. Following a ruling by the EU Court of Justice, X and the inspector draw up a VSO. It is hereby agreed that the additional assessments will be annulled and that tax interest, recovery interest and any other applicable interest will be calculated in accordance with the statutory provisions. The inspector also determines recoveries from the BCF for the municipalities and imposes additional VAT assessments on them. € 2 million in tax interest is charged for this. The recipient rejects X’s request for interest
Source Taxlive.nl
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