- The case involves a BV (limited liability company) in the Netherlands that operated a wholesale business in computers, peripherals, and software.
- The company generated most of its revenue through intra-community supplies and exports, for which it did not charge Dutch VAT.
- The company claimed input VAT for intra-community acquisitions and imports, as well as VAT charged on domestic purchases.
- Following investigations by foreign tax authorities, it was determined that the company had not paid enough VAT and had received excessive VAT refunds.
- The Court ruled that the company had not paid enough VAT and had received excessive refunds, a decision upheld in cassation.
- The Court based its decision on the principle that national authorities must deny input VAT deduction for purchases preceding intra-community supplies if there is evidence of VAT fraud in a chain of supplies and the taxpayer knew or should have known about it.
- The question of whether this principle is correct was the subject of a preliminary question referred to the Court of Justice, which confirmed the principle.
- The tax assessment in question covers the periods from January 1, 2007, to December 31, 2010.
- Given the doubt surrounding the validity of the principle at the time, the company’s position was considered reasonable, and the penalty was annulled.
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.
