- New policy regarding VAT on service costs will be implemented from 2024
- Service costs can include cleaning, repairs, waste removal, and providing security systems
- VAT on service costs depends on whether they are considered a separate service or part of the rental agreement
- Previous policy stated that service costs in commercial real estate are usually VAT taxable, while those in residential rentals are usually VAT exempt
- New policy from 2024 includes jurisprudence stating that service costs are separate services if tenants can choose the provider or the extent of services
- For utilities, a separate service is considered if tenants can freely determine their usage, indicated by individual meters and billing based on actual usage
- If tenants can choose the service provider and it is listed as a separate item on the invoice, it is considered a separate service
- Contact advisors for clarification on how the new policy applies to your specific situation
Source: crop.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.
