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Netherlands clarifies tax point prior to supply


Netherlands clarifies tax point prior to supply

The Netherlands Supreme Court has clarified that invoices issued prior to the performance of a taxable supply will trigger the tax point – the day when Dutch VAT is calculated and becomes liable.

The case under review concerned the provision of business construction services. A contract was issued with the Dutch VAT due, and the customer deducted the input VAT from their next tax return even though they had not yet paid it or the construction provided. The Dutch tax authorities challenged this, and held the company had no right to deduct the VAT.

Tax point on VAT invoice

The Supreme Court held that the Dutch VAT legislation was silent on this point and a tax point on a pre-supply invoice. However, it held that the contract did constitute and invoice and a tax point. The input VAT was therefore deductible at the time.


VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He is part of the European leadership team which this year won International Tax Review's Tax Technology Firm of the Year. Richard qualified as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.