- The District Court of Noord-Holland has ruled that X nv, a company engaged in loan granting and bond issuing activities, is established in the Netherlands and is liable to pay VAT for services received from foreign service providers.
- X nv had requested the activation of a VAT identification number in 2014 and provided it to its foreign service providers. However, it disputed its place of establishment in the Netherlands and claimed that it was not liable to pay reverse charge VAT.
- The court considered factors such as X nv’s registered office, the activation of a VAT identification number, provision of the number to service providers, and filing of tax returns in the Netherlands. Based on these factors, the court concluded that X nv is indeed established in the Netherlands.
- X nv’s argument that its directors are established outside the Netherlands and that board meetings take place outside the Netherlands was not sufficient to prove that it is no longer established in the Netherlands.
- The court also determined that the services provided by the foreign service providers to X nv cannot be considered bond-related intermediation and are therefore not exempt from VAT. As a result, X nv’s objection against payment of the turnover tax returns was deemed unfounded
Source Taxlive
