- 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.
Latest Posts in "Netherlands"
- No VAT Deduction on Apartment Purchase: Mixed Residential and Business Use Confirmed
- Low VAT Rate for Culture, Media, and Sports Maintained After Positive Implementation Test
- EU Advocate General: Loyalty Points Not Free for VAT Purposes in Lyko Case
- Advisor’s Recommendation on VAT-Exempt Staff Provision: No Penalty Imposed by Court
- No Reduced VAT Rate for Photo Mosaics and Contour Collages, Court Rules
