As a result of a combination of legal acts, a fee does not relate to the delivery of a good, but to the granting of a loan. This may hinder the right to deduct input tax.
The Amsterdam Court of Appeal has ruled in a referral case regarding a municipality’s right to deduct input tax. This municipality had drawn up a framework agreement with a housing corporation, a contractor and an educational foundation. Under this agreement, a school building was to be built. The Tax and Customs Administration was of the opinion that the delivery of the school building was not made for consideration. That is why the inspector refused the VAT deduction.
Source Taxence
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