- The Dutch tax authority has imposed a VAT assessment on partnership X.
- Partnership X argues that it is not a VAT entrepreneur because its activities did not involve sustainable participation in economic transactions.
- The court disagrees with partnership X’s argument, stating that by selling t-shirts, hoodies, and bags for several months, partnership X has participated in economic transactions in a sustainable manner and has competed with other stores selling clothing and bags.
- The court also rules that there is no reason to reduce the VAT assessment due to a donation element, as VAT is calculated based on the consideration received.
- The appeal is dismissed.
- Tax category: VAT
- Tax period: January 1, 2021, to March 31, 2021
- Court: Zeeland-West-Brabant District Court
- Date of decision: August 24, 2023
- Case number: 22/1542
- ECLI reference: ECLI:NL:RBZWB:2023:5897
Source: nlfiscaal.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.
