Court rules against X for incorrect application of zero VAT rate for car deliveries with collection declaration.

• X incorrectly applied the zero rate of VAT for the delivery of cars with pick-up declarations
• The Court of Gelderland ruled that X cannot use pick-up declarations as there is no fixed customer
• X sells second-hand cars and claimed to deliver most of them to Z in Bulgaria using pick-up declarations
• The Bulgarian Tax Authority confirmed that Z does not exist at the given address
• The tax authority imposed a tax assessment and stated that the pick-up declarations were flawed
• The Court ruled in favor of the tax authority, stating that X cannot use pick-up declarations for deliveries to Z
• Z is not a fixed customer as it existed for less than a year and X started using pick-up declarations after just one delivery
• X cannot determine if the cars were transported to other EU countries, so Z cannot become a fixed customer retroactively
• The penalty for gross negligence was also upheld
• The appeal was dismissed by the Court of Gelderland

Source: taxlive.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.

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