- The Ministry of Finance has published a draft proposal for a revision of VAT on services related to immovable property
- The current VAT revision rules for real estate services will be extended to include services of at least €30,000, such as renovations and major maintenance
- A VAT revision period of five years will be implemented, where changes in VAT use of the property can lead to repayment of previously deducted VAT or additional VAT deduction rights
- The proposal aims to prevent tax avoidance by temporarily subjecting properties to VAT after investment and then renting them out VAT-exempt
- The measure is intended to create a level playing field for entrepreneurs renting out real estate
- The new regulation is expected to come into effect on January 1, 2026, increasing administrative burdens for businesses.
Source: meijburg.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.
