We pay VAT almost every day, usually without thinking. When shopping or when stated on a business invoice, we obediently accept Value Added Tax. However, this is a challenging form of taxation with many ‘pitfalls’, for example for multinationals and organizations in the public domain.
In general, Jeffrey experiences that organizations are now paying more attention than before to VAT issues. In the tax practice, where Jeffrey developed further into the VAT specialist he is today, he sees more and more complex issues ending up on his desk. Jeffrey: “On the one hand, this is due to the strong growth of our compilation and control practice, where many VAT issues arise in areas such as real estate and international trade. On the other hand, we are also dealing here with changed VAT legislation. We also see, for example, in (municipal) sports companies that their VAT position has changed significantly as a result of the extension of the VAT sports exemption. ”
VAT sports exemption
The fact that professional guidance on VAT issues is worthwhile, in a responsible manner, is evident from the various examples outlined by Jeffrey. The interests are great and matters that entrepreneurs or administrators generally cannot resolve themselves are daily fare for Jeffrey. In that sense, he again mentions the situation surrounding the VAT exemption for sports companies. As a result of the extension of this exemption, many performances of sports companies (not for profit) are now exempt.
The consequence of this is that they are no longer allowed to deduct VAT on investments in sports facilities and on their maintenance costs. Limited subsidy schemes have been set up to compensate. Jeffrey: “Ultimately, this often has cost-increasing consequences for the sports population. This is a social disadvantage that can perhaps be solved by optimizing the VAT position of such an organization”. You can make use of the sales tax calculator zip code there now.
There are more examples to name. For example, VAT is sometimes an obstacle in the first instance to the creation of useful partnerships between (semi) governments. For example when it comes to lending out personnel. Here too, however, solutions are available that neutralize this obstacle.
“The term ‘saving tax’ is not always a good term. However, this is by no means always about avoiding tax or creating a ‘paper reality’. As a tax law student, he graduated on the subject of turnover tax. In his thesis, about abuse of law in VAT at healthcare institutions and schools, he described how constructions were devised there to save VAT. Jeffrey concludes: “By optimizing the VAT position of organizations, we clearly serve a social or economic interest. There is a fine line between saving tax and dealing responsibly with tax legislation. It must of course remain upright. ”