THE BOTTOM LINE
- Deadlines are final: Dutch courts will rigorously enforce strict statutory deadlines for submitting VAT refund claims. Missing them means forfeiting the right to the funds.
- A supplemental filing is a new request: A supplemental VAT return (a “suppletie”) seeking an additional refund is treated as a new claim, not a simple amendment. It is therefore subject to the same short, strict deadlines as an initial request.
- Discretionary reviews are a dead end: If a deadline is missed, the tax authority may consider a discretionary review, but its decision to deny it is not subject to appeal in court, leaving businesses with no further recourse.
THE DETAILS
This case revolved around a homeowner who installed solar panels, thereby becoming a VAT entrepreneur in the eyes of the Dutch tax authority. They initially filed a timely VAT return for the last period of 2018, claiming and receiving a refund for the tax paid on the solar panels. However, almost a year later, in November 2019, they submitted a supplemental filing seeking a much larger refund for the VAT incurred on the construction costs of the new-build home itself, arguing the home was integral to the energy-generating “business”.
The key legal issue was not the eligibility for the refund, but its timing. The tax authority, and subsequently the courts, determined that the supplemental filing was not a simple correction to an earlier return but a new request for a refund. Under Dutch law, such requests must be filed within six months of the end of the calendar year in which the claim arises. The November 2019 filing for a 2018 tax period was therefore significantly late. The taxpayer’s argument that a five-year window for corrections should apply was dismissed.
The Court of Appeal upheld the tax authority’s decision entirely. For the part of the tax period not covered by the initial return, the request was declared inadmissible for being out of time. For the part of the period that was covered, the request was treated as a plea for a discretionary, or ex officio, review. The tax authority’s rejection of this discretionary review is a final decision that cannot be challenged in court. This case serves as a critical reminder for all businesses operating in the Netherlands: ensure your VAT returns are complete and accurate from the outset, as the window to claim overlooked refunds is short and closes firmly.
SOURCE
Gerechtshof Arnhem-Leeuwarden
