- A company in the Netherlands produces and sells skincare products, applying a 9% VAT rate.
- The tax authority disagrees and imposes a VAT assessment, arguing that the 9% rate does not apply to these products.
- The Supreme Court rules that EU member states can selectively apply the 9% rate, as long as it does not violate the principle of neutrality.
- The Dutch VAT law distinguishes between registered medicines (9% rate) and medical devices (21% rate).
- The skincare products of the company fall under the category of medical devices.
- The question arises whether this distinction violates the principle of neutrality.
Source: fiscount.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.
