Indirect Tax Weekly Digest | Deloitte Nederland

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Indirect Tax Weekly Digest

Your weekly update on Indirect Tax topics

Read all about the latest developments in the field of Indirect Taxation in the Netherlands, the EU and the UK and globally.

6 December 2021

Court of Appeal rejects VAT recovery right of PE funds in liquidity events

On September 14, 2021, the Amsterdam Court of Appeal ruled that a Dutch entity that is part of a private equity structure is not entitled to recover VAT on costs relating to refinancing, even though the entity recharged these costs. This decision could have a significant impact on the right to recover VAT in case costs are incurred for liquidity events of private equity funds. Read our alert on this judgment here.

Relevant for: private equity funds planning liquidity events

Contact: Arjan de Winter

EU VAT Committee Working Paper on CJEU Danske Bank

The Working Papers prepared for the meeting of the EU VAT Committee on 22 November revisit, amongst other things, the treatment of VAT groups by multinational businesses in light of Danske Bank. Unsurprisingly, given that Danske Bank followed the analysis adopted by the VAT committee at earlier meetings, Working Paper 1025 proposes that the act of joining a VAT group should dissolve an establishment’s ties with the rest of the legal entity and make it part of the VAT group instead. Cross-border transactions between branches and head offices, or between branches, should therefore be subject to VAT if either establishment is in a VAT group. Although the VAT committee’s Guidelines (which will result from the meeting) are not binding on EU Member States, it will be interesting to see whether Member States which currently include legal entities in VAT groups in their entirety (which is also how the Netherlands applies VAT grouping) will feel pressured to change their approach if the VAT committee follows the Working Paper’s approach.

Relevant for: VAT groups by multinational businesses
Contact: Lex Neijtzell de Wilde

New portal for VAT related matters mandatory from 2022 onwards

From 2022 onwards, it will be mandatory for VAT taxable persons performing activities in the Netherlands to submit their VAT returns and to communicate other VAT related matters in a new portal “Mijn Belastingdienst Zakelijk” of the Dutch Tax Authorities. An online identification system (“eHerkenning”) will be mandatory to enter this portal. In a Q&A-style alert we inform you about these developments.

Relevant for: educational institutions considering the application of the cost sharing exemption
Contact: Rob Swenne

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