Additional assessment of VAT for 2016 was rightly imposed despite Spanish VAT problems

• The Gelderland District Court upheld the additional VAT assessment for 2016, despite issues with VAT paid in Spain and a settlement agreement.
• X, a partnership trading in exclusive watches, requested a VAT refund from Spanish tax authorities for 2015, but the refund was denied.
• An audit led to a settlement agreement for 2011-2015, after which the inspector imposed an additional VAT assessment for 2016 based on the VAT balance sheet debt.
• The court ruled that the assessment was correct, and the inspector was not obligated to advise X on potential issues with the Spanish VAT refund.
• The court found no reason to challenge the balance sheet debt and noted that the settlement agreement only applied to the period up to 2015, not including 2016.
• The appeal was dismissed with no order for costs.

Source Taxlive