Restaurants may be paying tens of millions too much VAT.

Dutch rules lead to the high/low ratio being calculated incorrectly in certain cases, causing restaurants to remit too much VAT at the high rate. The rules may be in conflict with European regulations. A test case regarding this issue was recently initiated, reports. Objection portalOn this new portal, advisors publish and find new objection procedures and positions before court rulings are published.

VAT and hospitality
“For a restaurant with an annual turnover of €300,000, the financial stake in this procedure can easily rise to approximately €10,000 per year. It concerns the application of VAT rates when serving meals. Based on, among others, European case law and 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, a university lecturer at the University of Amsterdam, and a Deputy Judge at the Court of Appeal in Arnhem. He is the initiator of this test procedure and has published it via Bezwaarportaal.

Importance for advisors
Roel Mariën of Bezwaarportaal explains: “On Objection portal The advisor can find all background information regarding the ongoing procedure, including a model objection letter with which he can lodge an objection on behalf of clients against the VAT remittance or refund decision. Advisors who register with Bezwaarportaal are informed about the further progress of the procedure. By reporting new procedures such as this in advance, advisors benefit from each other's efforts in preparing and conducting tax proceedings. The advisor who reports the procedure generates the necessary exposure for his or her firm. Advisors who are subscribers to Bezwaarportaal can already lodge an objection on behalf of their clients during the objection phase of the procedure. Bezwaarportaal aims to facilitate this win-win for the advisor who reports a procedure and advisors who are subscribers.

File a repeated objection?
Bezwaarportaal strives for a practical and efficient working method in which advisors are not forced to continue submitting objections en masse. “We will enter into consultation with the Ministry as to whether filing a new objection against future VAT payments or VAT refund decisions can be dispensed with after the submission of the first objection. However, in such cases, it is impossible to predict whether the Ministry will be willing to cooperate,” says Mariën.

Collaboration sought
As part of this pilot procedure, Nieuwenhuizen has indicated that it would like to get in touch with an advisor from a (wok) restaurant that charges all-inclusive rates for food and alcoholic beverages. For this type of restaurant, an additional pilot procedure could be initiated alongside the current procedure. Advisors can contact the following for this purpose: Objection portal after which we discuss the possibilities for collaboration.

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