- Background of the Case: A private limited company (BV) involved in project development was audited, revealing discrepancies between its VAT returns and the financial administration’s records, leading to additional VAT assessments imposed by the Tax and Customs Administration for the years 2018 (€21,232) and 2019 (€14,901).
- Profit-Sharing Agreement Submission: The BV presented a profit-sharing agreement, drawn up on December 3, 2019, claiming that the invoiced amounts were related to this agreement, which should not be subject to VAT.
- Court’s Rejection of the Agreement: The Arnhem-Leeuwarden Court of Appeal rejected the BV’s argument, stating that the profit-sharing agreement did not accurately reflect the economic reality, as it was created only after the initial services had already been provided.
- Ruling on Additional Assessments: The Court upheld the Tax and Customs Administration’s additional VAT assessments, determining that the amounts invoiced for the development work were indeed subject to VAT.
- Fine Adjustment: Although the additional VAT assessments were confirmed, the Court annulled the fine for 2018, acknowledging that the inspector’s conclusion regarding the profit-sharing agreement was made after the fact.
Source Taxence
