- The court ruled that VAT is payable on the termination fee for VAT taxable rental.
- The landlord and tenant had opted for VAT taxable rental.
- The landlord wanted to sell the building and terminate the lease agreement.
- They entered into a settlement agreement, where the landlord paid the tenant a termination fee of €250,000.
- Both parties believed that no VAT was payable, but the tenant could charge VAT if it turned out to be payable.
- The court determined that VAT is indeed payable on the termination fee.
- This is in line with previous court rulings and European case law.
- The imposition of a penalty for non-compliance was justified.
- The VAT assessment was correctly calculated based on the full amount of €250,000.
Source: taxlive.nl
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
