On September 16, 2013, A BV bought a plot of land from the municipality for which €74,954 VAT was charged. The plot is adjacent to the Z BV site. A BV deducted the VAT paid on the purchase of the plot in full as input tax in 2013. A written lease has been concluded between A BV and Z BV dated 15 November 2018. This states that the lease will take effect on January 1, 2014 and has been entered into for an indefinite period of time. The initial rent on the commencement date is €20,000 on an annual basis. A BV has not declared any taxed turnover in the years 2013 to 2017. In 2018, €100,000 in taxed turnover was declared. Initially, no taxed turnover was declared in 2019. When supplemented on March 19, 2020, €20,000 taxed turnover for the last quarter of 2019 is still indicated.
The question is whether A BV was right to deduct the VAT charged on the purchase of the plot of land in 2013 as input tax at the time.
According to the Noord-Nederland District Court, A BV does not make it plausible that at the time of delivery of the plot in 2013, it had the intention to lease the plot subject to tax. There was therefore no right to deduct. The tax authorities have rightly levied the deducted VAT.
Source BTW jurisprudentie
