VAT arrears at the end of the financial year may result in additional tax charges. The amount of the fine can be very large, it is equal to the amount of debt. Here is a real example of litigation on this issue.
The company, which resells watches from expensive luxury brands, bought goods throughout Europe and sold them in the Netherlands. In the specific case that gave rise to the proceedings, the watch was purchased in Spain at a price that included Spanish VAT. The product was then sold in the Netherlands using the company’s usual margin scheme. The tax office checked the transactions for 2011-2015 and came to the conclusion that this was a violation of the law. In 2017, a settlement agreement was concluded with the tax authorities, but the balance sheet for 2017 showed an underpayment of 23 euros in VAT. The tax office assessed the same fine.
The company did not agree. The legal battle continued for a long time, but now the decision has been made: the company will have to pay the fine, since it was imposed legally.
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It’s not just businessmen who have difficulty paying taxes. To avoid mistakes, get advice “General issues of taxation of individuals”. If your question concerns:
- Declaration of income from Dutch and foreign real estate,
- Taxation when buying and selling real estate,
- Income from dividends and sales of shares of your own company,
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- Income from international organizations,
you will need more advanced consultation. Order her and don’t put yourself at risk of a fine from the tax office!
Publication Date: 23.01.2024
