1.   May ING deduct any input tax for February 2020? If yes, how much?

2.   Is any output tax due from ING for February 2020? If yes, how much?

3.   How much VAT is due from ING to the Revenue (or from the Revenue to ING) for February 2020?

ING is a Dutch bank. It is a taxable person registered for VAT. In 2019 it made two types of supplies: loans and other financial services to the tune of 1b euros and lease of real estate to the tune of 50m euros. All the real estate it leased was located in the Netherlands, and it was leased with VAT (ING made us of the option to add VAT to lease of immovable property voluntarily). The financial services it provided to clients located in several countries: 500m euros worth to clients in the Netherlands and another 500m euros worth to clients in other EU member states. 

In February 2020 it made the following supplies: 30m euros worth of financial services to other EU countries and 5m euros worth of leases of real estate in the Netherlands. Its input supplies for February 2020 (all from Dutch taxable persons) were as follows (ING received the invoices and paid for all the supplies during the same month): 200,000 euros worth of electricity to leased premises, 200,000 worth of electricity to its office which deals exclusively with serving foreign clients and 300,000 euros worth of IT services used by all divisions of ING. The VAT rate in the Netherlands is 21%. All the amounts are exclusive of VAT.

Answer rating: 100% (QA)

1 Yes ING can deduct input tax for February 2020 The amount of input ta... View the full answer