Amsterdam Court Rules on Financial Service Provider’s Liability for VAT Non-Compliance

• The Civil Chamber of the Amsterdam Court ruled that Y BV did not properly execute the agreed assignment as they failed to file annual and monthly VAT returns for several periods
• X BV, a company selling covers for child seats, hired Y BV, a financial service provider, to handle their VAT filings for activities in Germany
• The German Tax Authority found X BV non-compliant with VAT obligations, resulting in fines and a temporary closure of X BV’s account on a German sales site
• X BV sought damages from Y BV for these issues
• The court found that X BV likely suffered damage due to Y BV’s failure to fulfill their duties
• X BV’s claims for damages included EUR 46929.82 in fines, EUR 12000 in lost sales, and EUR 3890 for hiring a German tax specialist
• The court noted that X BV’s claims were insufficiently substantiated and gave X BV a few weeks to provide more detailed support for their claims

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.

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