VATupdate
VAT

Share this post on

Municipality X’s Packaging Waste Collection Deemed Taxable Activity by Court – June 21, 2024

  • Municipality X collects packaging waste, which is considered a taxable activity for VAT
  • Municipality X switched to a post-separation model for collecting and processing PMD waste from February 1, 2020
  • Municipality X receives a collection fee from foundation A and pays VAT on it
  • Municipality X argues that waste collection is a government task and not subject to VAT
  • The tax inspector disagrees, stating that waste collection is not exclusive to municipalities and that X facilitates businesses by sharing collection information
  • The court rules in favor of the tax inspector, stating that the fees received by X from businesses are directly related to waste collection and constitute a legal relationship with services exchanged
  • The court also determines that X is not acting as a government entity for VAT purposes, as waste collection is not subject to a specific legal regime solely for X
  • The appeal made by X is dismissed as unfounded.

Source: taxlive.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.

Sponsors:

VAT news

Advertisements: