- The tax authorities in the Netherlands may not only rely on the information in an invoice when determining the deductibility of input tax in a dispute.
- A VAT entrepreneur operates an organizational consulting firm and is involved in import, export, purchasing, selling, and trading of goods.
- The tax authorities question the entrepreneur about five invoices in 2018, which are from another entrepreneur’s company.
- The tax authorities argue that the invoices and documents regarding the collaboration are not clear enough about the nature of the agreed-upon services, leading to excessive deduction of input tax.
- The court, however, considers not only the invoices but also the entrepreneur’s explanation and intention regarding the collaboration.
- The entrepreneur provides evidence that the other entrepreneur’s company paid the VAT on the invoices.
- The court determines that the entrepreneur is entitled to deduct more input tax than allowed by the tax authorities and reduces the imposed additional assessments.
Source: pkfwallast.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.
