X BV is not entitled to deduct input tax

Court Decision on VAT Deduction: The Zeeland-West-Brabant District Court ruled that X BV is not entitled to deduct input VAT for renovation costs of a health centre due to its exempt rental services.
Dispute Over Pharmacy Activities: X BV claimed it conducted pharmacy activities allowing VAT deductions, but the court found it did not provide sufficient evidence, noting that pharmacy turnover was attributed to another entity (BV 2).
Mitigation of Penalties: Although the court upheld the tax inspector’s additional VAT assessments, it mitigated the default penalties for excessive case handling time, reducing them to €4,104 for 2017 and €5,014 for 2018.