- Taxpayer sold a car to its director for 2,624 euros including 434 euros in VAT.
- Taxpayer previously purchased the car for 93,400 euros including VAT and claimed the VAT as input tax.
- Taxpayer claimed a correction for private use of the car in the annual VAT return.
- Taxpayer submitted a VAT return for the fourth quarter of 2020 showing a VAT liability of 35,253 euros.
- Subsequently, Taxpayer appealed the VAT assessment arguing that the correct VAT liability was 4,707 euros.
- Dispute concerns the calculation of VAT on the sale of the car.
- Taxpayer argues that the sale was a taxable supply under the VAT Act while the inspector argues that it was not.
- Taxpayer argues that there is a direct link between the payment and the performance of the service as the director-general paid the full price for the car.
- Inspector argues that there is no direct link between the payment and the performance of the service as the price was determined by other factors such as the shareholders relationship between the taxpayer and the director-general.
- Court finds that there is a direct link between the payment and the performance of the service as the taxpayer had previously purchased the car for 93,400 euros including VAT and had claimed the VAT as input tax.
- Court also finds that the price of the car was not abnormally low as it was determined by the market value of the car.
- Court concludes that the sale was a taxable supply under the VAT Act and that the taxpayer’s VAT liability is 4,707 euros.
- Court’s judgment is that the sale of the car was a taxable supply under the VAT Act and that the taxpayer’s VAT liability is 4,707 euros.
Source: uitspraken.rechtspraak.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.
