5 Major Developments in Netherlands

5 Major Developments in the Netherlands

• OECD: Netherlands should introduce uniform VAT rate

• Digital litigation in tax matters: an update

• Amendment VAT Act in relation to adjustments to the provisions regarding the place of supply of certain virtual services

• Netherlands: Government Investigates the Effectiveness of Reduced VAT Rate

• Fine in the event of a hefty VAT assessment overturned because of an arguable point of view

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Brexit

• Court of Amsterdam: Proportional deduction & Should the United Kingdom be considered a third country for the purposes of the VAT Act as of 1 February 2020?

CBAM

• Memorandum of amendment to the CBAM bill

CESOP

• Update – Dutch Law Enacted for Implementation of New Reporting Obligations for Payment Service Providers to Combat VAT Fraud

• Implementation Act Payment Service Providers Directive in Official Gazette

Composite Supply

• Telecom provider also owes VAT on support bundle

• Information service with mobile subscription is not a separate service for VAT

• Arnhem-Leeuwarden Court of Appeal: Donating data in combination with participation in a game of chance is not a separate service for VAT

• Arnhem-Leeuwarden Court of Appeal: Information service with subscription is not a separate service for VAT

• Court of Gelderland: Pension scheme is one inseparable service whereby the taxable base is formed by the full premium

• Comments on ECJ C-282/22: VAT is also due in case of illegal purchase of electricity

Cryptocurrency and NFT

• Navigating Dutch tax and financial regulatory laws on NFTs

Customs

• Entry into force new Dutch tax classification rules postponed until 1 January 2025

• Customs value in related-party or intercompany transactions

DAC6

• 2023 Guidelines on Mandatory Disclosure Rules (DAC6) published

• Netherlands updates guidance on mandatory disclosure regime

• Netherlands updates guidance on mandatory disclosure regime

• Dutch Ministry of Finance Updates DAC6 Guidelines

DAC7

• Tax and Customs Administration points to reporting obligation DAC7

DAC8

• Dutch Government Tax Plans 2024 and Other Legislation

• Agreement on DAC8 is on the Ecofin Council agenda for May 2023

• Tax information DAC8 not usable for pre-filled tax returns

Deduction (Input Tax Credit)

• Court of Amsterdam: VAT due on fees, but entitled to input VAT deduction

• Court of Amsterdam: Proportional deduction & Should the United Kingdom be considered a third country for the purposes of the VAT Act as of 1 February 2020?

• Private-equity fund is not a VAT taxable person and cannot deduct input VAT

• Court of Appeal of Arnhem-Leeuwarden: Compromise about VAT return after maximum effort to prevent participation VAT fraud

• VAT deduction for cash purchase inventory sufficiently substantiated

• Possibility of donating unused mobile data to a charity does not entitle to a VAT refund.

• Reclaim the deadline VAT on solar panels is approaching

• Deduction of VAT on acquired store inventory wrongly refused

• No right to deduct input tax for company pension fund

• Cooperating partner cannot deduct VAT on the purchase of Porsche

• Court of Zeeland-West Brabant: Inadmissible Request for VAT Refund due to Failure to Meet Statutory Deadline

• Court of Zeeland-West Brabant: Taxpayer failed to prove that all the conditions for claiming the input tax deduction were met

• Dutch lowest court rules that a private equity investment fund is not entitled to the recovery of VAT on transaction costs

• Lending counts towards determining the pro rata deduction

• Court of Amsterdam: VAT Deduction and Insurance Classification in Pension Agreement

• Investment Fund is not a VAT entrepreneur: no right to deduct input tax

• Dutch Court Upholds VAT Assessments and Penalties for Incorrect Deduction Calculation in Loan-Providing Company

• VAT recovery on transaction costs for PE fund denied

• Secretary of State has decided not to appeal the Court’s ruling in the case involving X and the deduction of VAT

• Investment Fund is not a VAT entrepreneur: no right to deduct input tax

• Granting access to the outdoor swimming pool partly taxed partly exempt from VAT

• Foundation for the promotion of a sustainable eel sector no full right to deduct input tax and no reduced VAT rate

• Court of North Holland: A limited partnership that acts as an investment fund does not qualify as a VAT entrepreneur

• You don’t have to know everything for deduction input tax

• Court of Amsterdam: Proportional deduction method; banking resolution; attributable costs

• Court of Gelderland: VAT rate and input VAT deduction for foundation that promotes a sustainable eel sector

• Court of Appeal in The Hague: Sufficient evidence bypass formal deficiencies in the invoice

• Authorities: Timely claim the VAT on your solar panels

• Supreme Court: Acquisition cost of a business asset

• VAT deduction tax unit at Sale-and-Leaseback of movable property

• AG to Dutch Supreme Court opines about private use of company cars for commuting to and from work during periods of remote work

• Flashback on ECJ cases C-434/03 (Charles and Charles-Tijmens) – If the taxpayer chooses to treat capital goods used for both business and private purposes as business goods, input VAT is immediately deductible in full

• Rental of office to self-owned legal entity is VAT-exempt economic activity

• Court of Gelderland: Pension scheme is one inseparable service whereby the taxable base is formed by the full premium

• No VAT deduction for rental of solar panel roof by own real estate partnership

• VAT deductions for qualifying supplies of food and drinks by hotel and catering companies

• Tax Authorities do not provide proof of fraud: customer rogue supplier is entitled to VAT deduction

E-Commerce / Electronic Services

• Dropshipping and VAT

• Bill amending the VAT Act (antiques and virtual services)

E-invoicing

• Country fact sheets: eInvoicing in the Netherlands

• E-Invoicing Compliance in the Netherlands (All You Need to Know)

• Netherlands reluctant on domestic B2B e-invoicing

ECJ (European Court of Justice)

• Flashback on ECJ Cases – C-124/07 (J.C.M. Beheer BV) – Activities of Insurance brokers who have only indirect relations are VAT exempt

• Flashback on ECJ cases C-434/03 (Charles and Charles-Tijmens) – If the taxpayer chooses to treat capital goods used for both business and private purposes as business goods, input VAT is immediately deductible in full
• Comments on ECJ C-282/22: VAT is also due in case of illegal purchase of electricity

• Flashback on ECJ Cases C-494/04 (Heintz van Landewijck) – Obligation to reimburse amounts paid for the purchase of excise stamps which correspond to VAT

Environmental Tax

• From July 1, “plastic tax” for disposable cups and containers containing plastic

• VAT and solar panels

Excise

• Increase excise duty on fuels from 1 July 2023

• Understanding alcohol excise duties in the Netherlands

Exemption

• Court of Amsterdam: Are services by eurythmy therapist exempt from VAT?

• Agreements do not lead to mediation services for VAT exemption

• Amendments to draft bill to abolish property transfer tax concurrence exemption for share transactions

• Flashback on ECJ Cases – C-124/07 (J.C.M. Beheer BV) – Activities of Insurance brokers who have only indirect relations are VAT exempt
• Court of Amsterdam: VAT Deduction and Insurance Classification in Pension Agreement
• Dutch Court Upholds VAT Assessments and Penalties for Incorrect Deduction Calculation in Loan-Providing Company
• Granting access to the outdoor swimming pool partly taxed partly exempt from VAT
• Court of Amsterdam: Proportional deduction method; banking resolution; attributable costs

• Reverse charge mechanism can only be applied if the identity of the recipient is known

• Dutch explanation of concept of new construction is too strict

• Supreme Court: provision of a club building more than passive rental

• Support center of home care organization can apply VAT exemption

• Care provided by the regional support center for home care is exempt from VAT

• Court of Appeal in The Hague: Fulfilling essential and specific role in the provision of home care is exempt

• Observation allowance Dentist’s partnership VAT-loaded

• Amsterdam Court of Appeal: “Boxx on wheels” services do not qualify as the rental of immovable property

• Possible Limitations on VAT Healthcare Exemption: Individual Assessment within VAT Fiscal Unity

• Full premium industry-wide pension fund exempt from VAT

• Rental of office to self-owned legal entity is VAT-exempt economic activity

• Full premium industry pension fund exempt from VAT

• Court of Gelderland: Pension scheme is one inseparable service whereby the taxable base is formed by the full premium

• Assessment of application of (medical) exemption according to AG not at VAT group level

• Deputy allowance dental practice not covered by medical exemption

• Decree on VAT exemption for (para)medical services amended with regard to equivalent quality level

• Govt Submits Bill to Parliament Implementing Directive on VAT Scheme for Small Businesses

• Position of the tax authorities on VAT exemption for medical laboratories too rigid

• Change in VAT decree; medical pedicure services

• Expansion of the VAT sports exemption did not make the municipality liable for compensation

• Dental partnership is liable for VAT on observation fee (District Court Gelderland)

• Institutions for debt assistance and social work remain exempt from VAT

• Approval published on socio-cultural VAT exemption and designated profit-seeking institutions

• Decision on application of socio-cultural VAT exemption

• Budget management, budget guidance and budget advice with the aim of making a profit are not exempt from VAT

• Knowledge group positions on VAT exemptions for commercial laboratories published

• Decision on WOO request on VAT exemption Commercial Laboratories

• Knowledge group position: payments by general practitioners to partnerships for integrated primary care are exempt from VAT

• Only non-profit debt counseling is exempt from VAT

• Ballooning and gliding do not fall under VAT sports exemption

• Supreme Court: Budget management, guidance, and advice provided by a profit-making company are not exempt

• Supreme Court: Guardianship and conservatorship – debt counseling and social work not exempt

• No VAT exemption for commercial debt counselors

• No VAT exemption for profit-seeking budget manager

• Provision of teaching staff by educational institutions

• Rental of attic space home VAT-exempt economic activity

• Court of Zeeland-West Brabant: No reason to ask the Court of Justice for a preliminary ruling

Fixed Establishment

• VAT Catch-up: Permanent Establishment Edition 2023

• Permanent establishment due to working from home?

Fraud / Tax Evasion

• Despite Hungarian VAT fraud in the flower trade, additional tax assessments are nullified

• Court of Appeal ‘s-Hertogenbosch: No 0% for pick ups due to involvement in fraud

• Million fraud in car industry

• Over 30 cars & €900,000 seized in the Netherlands as part of major EU VAT fraud case

• Court of Appeal of Arnhem-Leeuwarden: Compromise about VAT return after maximum effort to prevent participation VAT fraud

• EPPO cracks down on €19 million VAT fraud involving car sales in France and the Netherlands

• Conviction of the manager for VAT fraud

• Conditional imprisonment of eight months for VAT fraud

• Eight months suspended prison sentence for VAT fraud

• Judge clear again: incorrect VAT return not the fault of the accountant

• Man (34) arrested for large-scale VAT fraud

• You don’t have to know everything for deduction input tax

• Supreme Court: only apply reverse charge mechanism if customer is known

• EANOVAT conference and Phd seminar (23 and 24 June, Erasmus University Rotterdam)

• EANOVAT conference and Phd seminar (23 and 24 June, Erasmus University Rotterdam)

• Financial Adviser did not provide tax advice and is therefore not liable for failed VAT construction

• EANOVAT conference and Phd seminar (23 and 24 June, Erasmus University Rotterdam)

• Tax Authorities do not provide proof of fraud: customer rogue supplier is entitled to VAT deduction

Importation

• Preliminary questions to Supreme Court: Interest on arrears on import VAT

Intra-Community Transactions

• Despite Hungarian VAT fraud in the flower trade, additional tax assessments are nullified

• Construction with delivery of car to private individual failed: VAT-taxed intra-Community acquisition

Intrastat

• Netherlands ends Intrastat reporting threshold 2023

• Intrastat the Netherlands: update on 2023 reporting obligations

Invoice

• Court of Appeal in The Hague: Sufficient evidence bypass formal deficiencies in the invoice

Legal Acts

• Digital litigation in tax matters: an update

• No interest neutrality despite coherence between VAT compensation and additional assessment

• Timely additional assessment in accordance with own supplementation and no judgment on damage claim

Legislative Change

• Decree on levying sales tax on leasing updated

Liability (Reverse Charge/Withholding)

• Applying the VAT reverse charge? Know your customer!

• Reverse charge mechanism can only be applied if the identity of the recipient is known
• Supreme Court: only apply reverse charge mechanism if customer is known

• The customer’s identity is necessary for the reverse charge mechanism

• Supreme Court: Where the purchaser’s identity is unknown, the reverse charge mechanism does not apply

Margin Scheme

• Dealer in used cars fails to meet the burden of proof for the application of the margin scheme

• Car trader incorrectly applies margin scheme

• Bill amending the VAT Act (antiques and virtual services)

Place of Supply

• Amendment VAT Act in relation to adjustments to the provisions regarding the place of supply of certain virtual services

• Changing the location of virtual services does not lead to implementation problems at the Tax and Customs Administration

• Bill amending the Turnover Tax Act (antiques and virtual services)

• Proposal for an Additional Margin Scheme Act and place of virtual services to the House of Representatives

• KPMG Spring Memorandum 2023

Private Use

• AG to Dutch Supreme Court opines about private use of company cars for commuting to and from work during periods of remote work

Rate

• Netherlands: Government Investigates the Effectiveness of Reduced VAT Rate

• Court of Appeal ‘s-Hertogenbosch: No 0% for pick ups due to involvement in fraud

• Bill on the amendment of the Sales Tax Act (antiques and virtual services)

• Entertainment complex operator incorrectly applies a reduced VAT rate to entrance fees

• No low VAT rate for entertainment complex with DJs

• OECD: Netherlands should introduce uniform VAT rate

• Arnhem-Leeuwarden Court of Appeal: VAT rate for musical performances?

• Decision of June 16, 2023: VAT Taxation and Application of the Small Businesses Scheme for Solar Panels)

• Decree on levying turnover tax and application of KOR for solar panels updated

• Paid games in amusement park taxed at the reduced VAT rate

• Decree on VAT levy and application of KOR for solar panels updated

• Amusement park is right: game stall is attraction, reduced VAT rate applies

• Position on VAT rate lending crew sea ship

• Parliamentary Letter permission for participation Round table discussion on the abolition of VAT on fruit and vegetables

• Foundation for the promotion of a sustainable eel sector no full right to deduct input tax and no reduced VAT rate
• Court of Gelderland: VAT rate and input VAT deduction for foundation that promotes a sustainable eel sector

• Delayed answers regarding the effectiveness of abolishing VAT on vegetables and fruits in other countries

• Netherlands to Simplify Reduced VAT Rates

• Postponement letter answers parliamentary questions about implementation motion VAT zero rate fruit and vegetables

• Postponement letter answers parliamentary questions about implementation motion VAT zero rate fruit and vegetables

• VAT on human germ cells

• Reduced VAT rate not very effective

• ‘Expensive’ 9% VAT rate mainly benefits richer households: report

• Why does a higher VAT rate apply to the supply of human germ cells used to fulfill a couple’s wish to have children than to the supply of germ cells for agricultural purposes?

• Research: Reduced VAT rate falls short, examine alternatives

• Offer letter report Evaluation reduced VAT rate

• Cabinet research on VAT on fruit and vegetables is nothing new

• High VAT rate on human germ cells

• More clarity about VAT zero rate solar panels: wholesalers can deliver freely

Real Estate/Immovable Property

• Amendments to draft bill to abolish property transfer tax concurrence exemption for share transactions
• Dutch Court Upholds VAT Assessments and Penalties for Incorrect Deduction Calculation in Loan-Providing Company

• No VAT refund for hospice-related foundation that owns real estate

• Dutch explanation of concept of new construction is too strict
• Supreme Court: provision of a club building more than passive rental

• The Dutch interpretation of the concept of new construction is too strict

• Storage box in shed no rental of real estate

• Amsterdam Court of Appeal: “Boxx on wheels” services do not qualify as the rental of immovable property
• Dutch Government Tax Plans 2024 and Other Legislation

• Policy documents and knowledge group positions on application of Don Bosco judgment published

• Knowledge group position: Quay site is built-up immovable property for VAT purposes

• Various knowledge group positions on the construction site qualification for VAT have been published

• Purchasing and selling of plots of land results in VAT entrepreneurship

• KPMG Spring Memorandum 2023
• No VAT deduction for rental of solar panel roof by own real estate partnership

• Significant renovation does not yet turn the object into a new building

• Rental of attic space home VAT-exempt economic activity
• Court of Zeeland-West Brabant: No reason to ask the Court of Justice for a preliminary ruling

• Court of Zeeland-West Brabant: No TOGC as seller uses property in the exact same way as before sale

Real Time Reporting/Continuous Transaction Controls

• Netherlands reluctant on domestic B2B e-invoicing

Refund

• Municipality no VAT compensation for realization emergency landing port

• Court of Amsterdam: No refund from the VAT compensation fund because services have been performed to other party

• Knowledge group position: time-barred VAT refund cannot be set off against tax debt of the bankrupt

• Paid VAT in other EU countries in 2022? Ask back on time!

• Compromise on VAT refund after maximum effort to prevent participation in VAT fraud

• Application for refund inadmissible due to exceeding the six-week period

• No VAT refund for hospice-related foundation that owns real estate

• Preliminary questions to Supreme Court: Interest on arrears on import VAT

Registration

• Authorities: Timely claim the VAT on your solar panels

Reporting / Compliance

• Global VAT Guide: May 2023 VAT Updates

• Interest calculation for mirror corrections for turnover tax and VAT compensation fund

• Judge clear again: incorrect VAT return not the fault of the accountant

• VAT for resident businesses

• Ryan March 2023 Highlights

• Shareholder acquitted of intentional failure to file VAT return by entity

• VAT declarants are given a week’s respite

• EANOVAT conference and Phd seminar (23 and 24 June, Erasmus University Rotterdam)

• Logging into data portals for the tax authorities will soon only be possible via ”eHerkenning” and DigiD

• EANOVAT conference and Phd seminar (23 and 24 June, Erasmus University Rotterdam)

• Correct additional tax assessment for VAT payment in the wrong period

• EANOVAT conference and Phd seminar (23 and 24 June, Erasmus University Rotterdam)

SME (Small and Medium- Sized Enterprises)

• Decision of June 16, 2023: VAT Taxation and Application of the Small Businesses Scheme for Solar Panels)

• No adjustment to the turnover threshold for the small business scheme due to inflation

• Govt Submits Bill to Parliament Implementing Directive on VAT Scheme for Small Businesses

Supply of Services

• Bill amending the Turnover Tax Act (antiques and virtual services)
• Proposal for an Additional Margin Scheme Act and place of virtual services to the House of Representatives
• Comments on ECJ C-282/22: VAT is also due in case of illegal purchase of electricity

Taxable Amount

• VAT decree on leasing updated

• Supreme Court: Tourist tax by camping qualifies as a disbursement

• Customs value in related-party or intercompany transactions
• Flashback on ECJ Cases C-494/04 (Heintz van Landewijck) – Obligation to reimburse amounts paid for the purchase of excise stamps which correspond to VAT

• VAT treatment of cancellations and no shows

Taxable Person

• Civil law form decisive in determining who is the performing VAT entrepreneur

• Amsterdam Court of Appeal: Civil form drives who is the supplier

• Court of Amsterdam: No partnership in the form of a CV

• Private-equity fund is not a VAT taxable person and cannot deduct input VAT

• Renovation and sale of a boat does not lead to VAT entrepreneurship

• Court of Amsterdam: X cannot be regarded as an entrepreneur

• As of 2012, Architectural consultant is no longer a VAT entrepreneur

• According to the court, limited partnerships are sole proprietorships that perform VAT-taxed services

• Investment Fund is not a VAT entrepreneur: no right to deduct input tax

• Legislative proposal for the Implementation of the Small Businesses Regulations Act adopted

• Fine for VAT entrepreneur who pretends to have a CV

• Private equity investment fund not an entrepreneur for VAT

• Court of North Holland: A limited partnership that acts as an investment fund does not qualify as a VAT entrepreneur

• Arnhem-Leeuwarden Court of Appeal: Taxpayer, either individually or together with his spouse, an entrepreneur?

• Purchasing and selling of plots of land results in VAT entrepreneurship

• The municipality is a VAT entrepreneur for the separate collection of packaging waste

• Court of The Hague: VAT due for collection/separation of packaging from household waste

• Supply of land carried out as an entrepreneur for VAT

• Work for and on behalf of the minister by a government body is not an economic activity

• Municipalities consider cassation in VAT matters on packaging waste

Taxable Transaction

• Veenendaal’s attempt to avoid VAT liability on parking fees by removing barriers at its parking garages has failed

• The amount to be paid agreed in 2019 pertains to the transfer of the company in 2014

• VAT due on sales of cars after company strike based on partly estimated turnover

• Collective advocacy and research are independent non-economic activities

• The option to donate unused MBs does not lead to a VAT refund on subscription fees

• Information service with mobile subscription is not a separate service for VAT

• The telephone shop owes VAT on the delivery of the telephone ‘on installment’ via the provider

• According to AG, commuting also qualifies as private use for many people working from home

• Dutch Government Tax Plans 2024 and Other Legislation

• Tax rules on business gifts

• Company bicycle and VAT

• Comments on ECJ C-282/22: VAT is also due in case of illegal purchase of electricity

• Observation fee is subject to VAT

• VAT consequences of a return of goods

• Sale-and-lease-back for VAT no transfer of business

• Work for and on behalf of the minister by a government body is not an economic activity

Tax Authorities / Penalties

• Fine in the event of a hefty VAT assessment overturned because of an arguable point of view

• Netherlands Continues to Maintain 8% Late Payment Interest Rate

• Knowledge group position ”Irimierente”

• Ancient, Vulnerable, Inefficient: The Value Added Tax System Strains from All Sides

• Increase tax interest from 4% to 6%

• Digital litigation of local taxes possible at all courts from 26 June

• Increased interest on tax due for VAT and other taxes

• New tax interest rates as of 1 July 2023

• Preliminary questions about interest on arrears on VAT included in Invite for Payment (UTB)

• Documents that are subject to an inspection report by the Tax and Customs Administration usually do not have to be submitted

• Arnhem-Leeuwarden Court of Appeal: Required declaration. Reasonable estimate. Offense fine.

• Shareholder acquitted of intentional failure to file VAT return by entity
• Correct additional tax assessment for VAT payment in the wrong period

Technology

• Amendment VAT Act in relation to adjustments to the provisions regarding the place of supply of certain virtual services
• Changing the location of virtual services does not lead to implementation problems at the Tax and Customs Administration

• McKinsey: The VAT system is about to collapse

• External party is building new VAT system for tax authorities

• New VAT system costs 190 million euros, excluding VAT

TOGC (Transfer of a Going Concern)

• Court of Zeeland-West Brabant: TOGC question not under review because supply made by someone else

• Reimbursement after mediation capstone transfer company, so no VAT is due

• VAT deduction tax unit at Sale-and-Leaseback of movable property

• Sale-and-lease-back for VAT no TOGC

• No transfer of generality of goods in the case of unchanged continuation of the company

• Sale and lease back, no TOGC

• Court of Zeeland-West Brabant: No TOGC as seller uses property in the exact same way as before sale

TOMS (Tour Operators Margin Scheme)

• Tax authorities explain why no appeal is filed against Court of Appeal of The Hague of 30 March 2023 re TOMS

• Travel agency scheme not applicable to rental homes for housing migrant workers

• Court of Appeal The Hague: No TOMS for rental of homes to employment agencies for the accommodation of temporary migrant workers

Triangulation

• Dropshipping and VAT

VAT Group

• Assessment of application of (medical) exemption according to AG not at VAT group level

• Application (medical) VAT exemption; test at the level of members of a fiscal unity

ViDA

• Netherlands reluctant on domestic B2B e-invoicing

• Digital reporting system and e-invoicing should ease administrative burdens

• ViDA – Realistic implementation period needed

• Letter of submission for answers to parliamentary questions about the assessment of directives and regulations on VAT rules for the digital age

Webinar/Event/Podcast

• EANOVAT conference and Phd seminar (23 and 24 June, Erasmus University Rotterdam)
• EANOVAT conference and Phd seminar (23 and 24 June, Erasmus University Rotterdam)
• EANOVAT conference and Phd seminar (23 and 24 June, Erasmus University Rotterdam)