A woman receives an AOW pension of just €328 per year. In addition, she receives over €26,000 in German pension. Because of this minimal AOW pension, she is covered under the Health Insurance Act (Zvw) in the Netherlands. The Zvw contribution is calculated on the basis of her total income, including the German pension. She asks the SVB to suspend her AOW benefit with retroactive effect, but submits her objection too late. The tax court is unable to help her.
No exemption under the Health Insurance Act (Zvw)
The woman lives in the Netherlands and receives a pension from Germany. In 2007, the SVB granted her an exemption from compulsory insurance under the AOW, the General Surviving Relatives Act and the General Child Benefit Act. However, this exemption does not apply to the AWBZ or the Zvw. She receives a small AOW benefit of €328 per year. This benefit means she is liable for insurance under the Zvw. The inspector issued a Zvw assessment based on a contributionable income of €26,258, the total amount of her German pension benefits.
Appeal to the SVB submitted too late
The woman has asked the SVB to stop her AOW benefit. The SVB stops the benefit with effect from 1 December 2023, but refuses to apply this with retroactive effect to 2019. The woman lodges an objection to this refusal, but submits it too late. The court declares her appeal unfounded. She then turns to the tax court, requesting that the SVB be ordered to terminate the benefit with retroactive effect after all.
Inspector provided timely advice
The woman also claims that the inspector should have informed her of the possibility of applying to the SVB for an exemption. The Court of Appeal rejects this. The inspector had already advised her representative by email on 23 October 2023 to ask the SVB to terminate the compulsory insurance and to enquire whether the state pension (AOW) benefit received could be repaid. This was well before the tax assessment of 28 November 2023. There is therefore no question of a failure to fulfil the duty to provide information.
Tax court lacks jurisdiction
The court has ruled that the Zvw tax assessment is lawful. As the woman is insured, she is liable to pay the contribution. As a tax court, the Court of Appeal does not have the power to order the SVB to terminate the compulsory insurance retroactively. Appeals against decisions by the SVB may be lodged with the general administrative court. The woman did pursue this route, but her objection was lodged too late.
Deadlines are strict
This ruling illustrates how a small state pension (AOW) can have significant tax implications. Due to the compulsory insurance obligation arising from that pension, the entire foreign pension is subject to the Health Insurance Act (Zvw) levy. Anyone wishing to avoid this must take timely action with the SVB. An objection submitted too late precludes a substantive assessment.