The Dutch rules mean that the high/low ratio is calculated incorrectly in certain cases, as a result of which restaurants pay too much VAT at a high rate. The rules may conflict with European regulations. A trial procedure has recently been launched on this matter, reports Objection portal† On this new portal, advisors publish and find new objection procedures and positions before court decisions have been published.
VAT and catering
'For a restaurant with a turnover of € 300.000 per year, the financial importance of this procedure can easily rise to approximately € 10.000 per year. It involves rate application when serving meals. Based on European case law and the European VAT Regulation 282/2011, it can be argued that incorrect VAT rates (high/low) are currently being applied in certain cases when serving meals,” reports Wilbert Nieuwenhuizen. Wilbert is an independent VAT specialist, assistant professor at the University of Amsterdam and deputy justice at the Court of Appeal in Arnhem. He is the initiator of this trial procedure and has published it via the Objection Portal.
Importance for advisors
Roel Mariën of Objection Portal explains: “Op Objection portal the advisor can find all background information about the current procedure, including a model notice of objection with which he can object to the VAT payment or refund decision on behalf of clients. Advisors who register with the Objection Portal will be informed about the further course of the procedure. By notifying new procedures such as these in advance, advisers benefit from each other's efforts in preparing and conducting tax procedures. The advisor who reports the procedure generates the necessary exposure for his or her office. The advisers who are subscribers to the Objection Portal can already lodge an objection on behalf of their clients during the objection phase of the procedure. This win-win for the advisor who reports a procedure and advisors who are subscribers wants to facilitate the Objection Portal.”
Repeated objection?
The Objection Portal strives for a practical and efficient working method in which advisers are not forced to continue submitting objections en masse. “We will consult with the Ministry as to whether, after submitting the first notice of objection, it is not possible to lodge a new objection against future VAT payments or VAT refund decisions. In such cases, however, it is a matter of coffee grounds to see whether the Ministry is willing to cooperate," says Mariën.
Looking for collaboration
In the context of this trial procedure, Nieuwenhuizen has indicated that he would like to get in touch with an adviser from a (wok) restaurant that charges all-in rates for food and alcoholic drinks. In addition to the current procedure, an additional test procedure could be started for this type of restaurant. Consultants can register for this at Objection portal after which we discuss the possibilities for cooperation.
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