{"id":1574,"date":"2025-02-06T13:07:07","date_gmt":"2025-02-06T12:07:07","guid":{"rendered":"https:\/\/vwg.nl\/uncategorized\/hof-den-bosch-staat-uitdividenden-auto-wel-toe\/"},"modified":"2026-03-03T10:34:51","modified_gmt":"2026-03-03T09:34:51","slug":"the-court-of-appeal-in-den-bosch-does-allow-dividends-to-be-paid-out-on-cars","status":"publish","type":"post","link":"https:\/\/vwg.nl\/en\/hof-den-bosch-staat-uitdividenden-auto-wel-toe\/","title":{"rendered":"Den Bosch court does allow car dividends"},"content":{"rendered":"<p class=\"wp-block-paragraph\"><a href=\"https:\/\/deeplink.rechtspraak.nl\/uitspraak?id=ECLI:NL:GHSHE:2025:215\" target=\"_blank\" rel=\"noopener\">Court of Appeal of Den Bosch<\/a> has ruled that the transfer of a car by a private limited company to a director and major shareholder for a consideration lower than its market value (\u201cdividend distributions\u201d) does not constitute an abuse of rights. We recently described a <a href=\"https:\/\/vwg.nl\/en\/nieuws\/court-also-finds-dividing-car-an-abuse-of-right\/\" target=\"_blank\" rel=\"noreferrer noopener\">ruling<\/a> in which the Amsterdam Court of Appeal did find that there had been an abuse of rights. The case before the Den Bosch Court of Appeal follows on from the judgment of the Zeeland-West-Brabant District Court, which we describe in our article <a href=\"https:\/\/vwg.nl\/en\/nieuws\/dividing-car-not-an-abusive-right\/\" target=\"_blank\" rel=\"noreferrer noopener\">Divided car not an abuse of right<\/a>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Timeline<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The main difference between the two cases appears to be the timeline. The case in which the Court of Appeal in Den Bosch ruled concerns a Volvo purchased by the private limited company on 29 December 2015. On 29 December 2020, the company sold the car to its director and major shareholder for \u20ac2,190, plus \u20ac434 in VAT. The difference between this amount and the Volvo\u2019s valuation of \u20ac29,750 is treated as a disguised dividend (\u20ac27,126) and is subject to dividend tax and income tax.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The Court considers that an abnormally low fee alone cannot constitute an abuse of rights. Furthermore, in this case, the Tax Authorities have not established any facts or circumstances to suggest that the agreed (low) remuneration is the result of an abuse of rights. Nor does the Court see any clear pattern of transactions or a purely artificial arrangement.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Dividend<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The Tax and Customs Administration had also argued that the disguised dividend should be regarded as part of the consideration on which VAT is payable. The Court of Appeal considers that this can only be the case if the dividend constitutes specific consideration for the supply of the car. The mere fact that a hidden dividend has been treated as such for the purposes of corporation tax, income tax and dividend tax is not sufficient to establish such a direct link.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Case law shows that when the dividend is formalised (in a shareholders\u2019 resolution recorded in the minutes of a general meeting), it does constitute consideration for the purchase of the car on which VAT is payable.<\/p>","protected":false},"excerpt":{"rendered":"<p>Hof Den Bosch heeft beslist dat de overdracht van een auto door een BV aan een DGA tegen een lagere vergoeding dan de waarde in het economisch verkeer (&#8220;uitdividenden&#8221;) niet kwalificeert als misbruik van recht. Onlangs beschreven we een uitspraak waarin Hof Amsterdam wel tot misbruik van recht concludeert. De zaak bij Hof Den Bosch [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1574","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"acf":[],"_links":{"self":[{"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/posts\/1574","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/comments?post=1574"}],"version-history":[{"count":0,"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/posts\/1574\/revisions"}],"wp:attachment":[{"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/media?parent=1574"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/categories?post=1574"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vwg.nl\/en\/wp-json\/wp\/v2\/tags?post=1574"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}