- X was a association of off-road vehicle enthusiasts.
- They organized events, including a multi-day event with camping, open to both members and non-members.
- Participants could drive off-road vehicles on an obstacle course created by X.
- Members paid a one-time registration fee and an annual membership fee (€110 in 2021).
- Members received a newsletter, a membership card, and a windshield sticker for event participation.
- Non-members paid an entrance fee for each event (€40 in 2021).
- The tax inspector believed X was liable for VAT and should file VAT returns starting January 1, 2021.
- X argued that their membership fee was not taxable as there was no direct connection between their activities and the fee.
- The court agreed with X, stating that VAT is levied on supplies of goods and services provided by a business operator for consideration.
- The inspector failed to prove a direct connection between the membership fee and X’s activities.
- The court ruled that there was a too remote connection between the fee and X’s events, making the fee non-taxable.
Source: futd.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.
