– The Dutch Tax Authority holds entrepreneurs in the supply chain accountable for VAT fraud, even if the fraud occurs abroad.
– The burden of proof lies with the Tax Authority, and if successful, the VAT deduction or zero rate application is denied.
– The Netherlands benefits from fraud abroad as the VAT collected from the denial of the zero rate does not have to be given to the foreign member state.
– Many entrepreneurs feel frustrated and emotional when held accountable by the Tax Authority.
– The Tax Authority may consider a conditional VAT assessment with a probationary period as a milder solution for first-time offenders.
– The amount of the assessment is determined in consultation with the inspector and is partially temporarily suspended.
– If the entrepreneur is not involved in another fraud chain or if agreements can be made regarding due diligence, the temporary suspension becomes permanent.
– Cooperation from the Tax Collector is also required for this solution.
– The solution may also involve waiving or reducing the penalty.
– The author believes that a conditional VAT assessment with a probationary period is a suitable solution for affected entrepreneurs.
– The Tax Authority needs to cooperate with the author and the entrepreneur to move forward with this solution.
Source: fiscaalvanmorgen.nl
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
