The case concerns the operator of a wholesale business in computers and consumer electronics. The tax authorities concluded that the entrepreneur was involved in VAT fraud, which invalidated the right to deduct input VAT for purchases preceding intracommunity supplies to so-called ‘missing traders’. Lower court found it not proven that the entrepreneur knew or should have known about the VAT fraud within the (international) chain. The Court of Appeal however considered the entrepreneur knew or should have known about the VAT fraud. Supreme Court confirms, but cancels the penalty due to a tenable standpoint.
Source: accountancyvanmorgen.nl
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