Small business scheme not for businesses based abroad
The entrepreneur generally performs their activities in Germany. In 2008 he carried out deliveries in the Netherlands. In his VAT return he applied the small business scheme. In dispute is whether the entrepreneur was entitled to do this.
The Breda Court judged that this is not the case. The court based its judgement on the Schmelz case from the EU Court of Justice. In this case was confirmed that the KOR only applies to small businesses located within the territory of the member state where VAT is due. Even though the notes on the VAT return forms do not state that the KOR is only applicable to businesses based in the Netherlands, this is no defence, as the notes to the tax return are general and only of an informative nature.