Court ruling on VAT and transfer tax exemption for newly manufactured real estate properties

• Case involves interpretation of Article 11, third paragraph, section b of the VAT Act and Article 15, first paragraph, section a of the Real Estate Transfer Tax Act
• Court rules that the property in question does not qualify as essentially new construction despite extensive renovations
• Court determines that the VAT directive does not require a less stringent test than what is outlined in Dutch law for the real estate transfer tax exemption
• Focus on whether a newly manufactured immovable property has been produced
• Refers to a previous Supreme Court ruling regarding the definition of “first use” after renovation
• Dutch law allows for determining conditions for the application of the “before first use” criterion in case of building renovations
• Court emphasizes that the interpretation of renovation in a previous EU Court of Justice ruling sets only a minimum standard for determining new construction properties

Source: uitspraken.rechtspraak.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.

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