- The case, heard on September 13, 2023, and published on October 9, 2023, is related to tax law.
- It involves a request for a VAT refund and the right to deduct VAT in a construction project.
- The court determined that the entire development of the estate should be considered as one project, impacting the eligibility for VAT deduction.
- The court agreed with this assessment, considering various agreements and parties involved in the development.
- The taxpayer engaged in both exempt (sales of apartment rights in existing buildings) and taxable (sales of building land) activities during the estate development.
- The court endorsed the taxpayer’s allocation of costs as directly attributable to taxable or exempt supplies and found no reason to doubt the taxpayer’s allocation of input tax.
- The dispute mainly centered on the proportion (30% exempt vs. 70% taxable) used for input tax deduction.
- The court ruled in favor of the taxpayer, stating that the deduction was correctly based on the budgeted proportion of expected exempt and taxable sales.
- The inspector’s argument to use the actual sales ratio at a later date was not supported by law.
- As a result, the court granted the taxpayer’s request for VAT refunds totaling €6,581 for January 2019, €7,750 for February 2019, and €862 for March 2019.
Source: uitspraken.rechtspraak.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.
