Self-Billing Insufficient Evidence for VAT Refund, Court Rules

• The court of Zeeland-West-Brabant ruled that ‘self billing’ does not provide sufficient evidence for VAT refunds.
• A holding and its two subsidiaries, forming a fiscal unity for VAT, submitted eleven refund requests.
• The tax inspector rejected these requests, suspecting VAT fraud.
• The fiscal unity appealed, presenting invoices related to transactions with four entrepreneurs.
• These invoices were self-generated by the fiscal unity and payments were made through offsetting.
• The fiscal unity did not comply with the tax authority’s request for additional information.
• The court found the invoices unconvincing, leading to the rightful rejection of the VAT refund request.

Source: taxence.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.

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