- The District Court of Noord-Holland annulled an additional VAT assessment of €7,472,148 against a private limited company (BV) suspected of VAT fraud, affirming that there were no taxable transactions for VAT purposes due to the sham nature of the invoices involved.
- Although the BV was found guilty of document forgery in criminal proceedings, it was acquitted of submitting incorrect VAT returns, leading the tax court to uphold the acquittal and maintain the presumption of innocence.
- The court emphasized that since the BV did not perform any taxable services, the tax authorities could not retroactively levy VAT, aligning with the principles outlined in the VAT Act 1968.
Source
