In this case, the court is assessing whether the sale of four parcels of land constitutes the sale of a building plot. The Court lists the definitions and holds them against the situation as presented in this case.
A building plot is defined as undeveloped land on which work has been carried out with a view to construction. Work can include demolition, clearing, and preparation of the land. The intention to construct a building must be present at the time of the work. (Note of the editors: see also ECJ Case C-461/08 (Don Bosco Onroerend Goed BV))
The presence of residual structures, such as foundations or walls, does not necessarily preclude the land from being considered undeveloped. If the land is sold with an obligation to demolish remaining structures, this does not change the classification of the land as a building plot. A partially demolished building is still considered to be a building for VAT purposes.
The presence of a small, insignificant structure on a large parcel of land does not prevent the parcel from being classified as undeveloped land. A public road that provides access to multiple parcels of land is not considered to be part of those parcels for VAT purposes. The sale of a building plot is subject to VAT, while the sale of an undeveloped parcel of land is exempt.
The Court holds these definitions against each of the parcels and concludes that the sale of three of the four parcels of land constitutes the sale of a building plot and is therefore subject to VAT.
The taxpayer’s reliance on the Vastgoedbesluit (Real Estate Decree) is not well-founded because the decree does not provide an exception for partially demolished buildings.
The presence of a small, insignificant structure on a large parcel of land does not prevent the parcel from being classified as undeveloped land.
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.
