- Court case about the national library’s entitlement to deduct input tax on its economic activities alongside its statutory tasks.
- The national library, X, is a public authority responsible for making the national library collection visible, usable, and sustainable.
- X also engages in economic activities like providing digital memberships, selling publications, and operating a (web)store.
- The main issue is the extent to which X can deduct input tax on these economic activities.
- The court rejected X’s claim for full input tax deduction.
- The court found insufficient connection between X’s statutory tasks and economic activities to consider them as a single whole.
- The court ruled that X cannot deduct input tax on costs related to non-economic activities.
- When actual use division is not possible, the court uses a pre pro rata calculation based on the ratio of revenue from economic activities to total revenue.
- This approach aligns with the method described in the Decision on Deduction, section 3.6.1, for local and regional broadcasters.
Source: nlfiscaal.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.
