- The Zeeland-West-Brabant District Court ruled that X VOF can apply the reduced VAT rate to maintenance packages sold with bicycles, regardless of whether the package is considered optional.
- X VOF, a bicycle dealer, offers a maintenance package that includes three servicing sessions, with the cost of replacement parts excluded, and applies the reduced VAT rate on the package while providing a discount on the bicycle that offsets the package’s cost.
- Following an audit that initially deemed the reduced VAT application incorrect, the court reversed the additional assessment and eliminated the default penalty, affirming that the maintenance package meets the legal criteria for the reduced rate.
Source Taxlive