The Zeeland-West-Brabant District Court has ruled that VAT should be paid on the purchase price of terminating a VAT-taxed rental agreement. This decision was based on a settlement agreement between the landlord and tenant, which stated that VAT would be passed on. The court determined that VAT should be calculated on the compensation amount, rather than deducted from it. The court referred to previous judgments, including the Lubbock Fine case, which established that if the rental agreement was subject to VAT, the same would apply to the purchase price. Therefore, the court upheld the default fine and confirmed that the additional assessment was correctly calculated based on the €250,000 payment, as agreed by the parties.
Source Taxlive
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