No VAT deduction for renovation of villa rented to DGA

• BV X obtained a villa by the sea and renovated it
• BV X rented the villa to A for one year
• BV X deducted the VAT on the renovation costs
• The tax inspector denied the deduction because the rental agreement was longer than 6 months
• BV X argued that the short-stay exception applied
• The court ruled that the rental of real estate is exempt from VAT
• BV X did not fall under the short-stay exception
• The court interpreted the duration of the actual stay as decisive
• BV X provided evidence of multiple short stays by A and his family
• The court considered the villa as a vacation home for A
• The VAT on the renovation costs was not deductible

Source: futd.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.

---

---