In a recent court case in the Netherlands, a cleaning company was fined for VAT negligence fines of 50%. The company hired staff from various employment agencies, who issued invoices with VAT. The cleaning company deducted this VAT. However, the employment agencies never reported and paid the VAT on the invoices.
The VAT inspector (therefore) denied the input VAT decution at the cleaning company.
The District Court rules that since it could not be assumed that services had been provided to X, the requirements of Section 15(1)(a) of the OB Act were not met and the inspector had correctly levied the deducted input tax.
The Court rejected the cleaning company’s appeal that she could not be accused of intent because she had used an accountant on whose expertise she trusted and was allowed to rely. The accountant had made the VAT returns on the basis of the information provided to him by X.
Source: FUTD (dutch)
