The Arnhem-Leeuwarden Court of Appeal ruled that X purchased a new-build complex consisting of 28 residential apartments, 15 storage rooms, and 17 parking spaces for €5,670,000 including VAT. The complex has 232 non-integrated solar panels on the roof, which X uses for VAT-exempt rental of living spaces and VAT-taxed rental of the roof for installation of the solar panels. The rental income from the roof is 0.5% of the total turnover. The court found that X cannot claim VAT deduction based on the turnover method unless it can prove that the actual use of the complex does not correspond to the deduction. The court also noted that X did not consider the roof’s function as a barrier to the complex and that there is no violation of the principle of neutrality.
Source Taxlive
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