X is a foundation that purchases security services for entrepreneurs in an industrial area. Arnhem-Leeuwarden Court rules that there is no economic activity as the foundation provides compensation without actually using the service itself.
Unofficial translation: VAT is a general consumption tax on goods and services. In line with the purpose of tax neutrality underlying VAT, the definition of the supply of goods in the VAT Directive and the additional definition of services ensure that this tax is generally applicable to all forms of consumption. The scope of the tax is nevertheless limited by its character as a tax on consumption. A trader must supply goods or services for consumption by identifiable consumers at a price paid by the consumer or a third party. There must therefore be a direct link between the economic activities and the remuneration for the economic activity.
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