The Arnhem-Leeuwarden Court of Appeal ruled that there was no right to an exemption under the small business scheme, because the lease agreement opted for VAT-taxed rentals. The Supreme Court dismissed the appeal in cassation as unfounded without further reasoning.
The purpose of Partnership X is to make one or more offices of the own home of the partners, a married couple, available to one or more companies in return for payment. X enters into a contract with a private limited company, and the tenant and landlord opted for VAT-taxed rent. The Arnhem-Leeuwarden Court of Appeal ruled that the letting of immovable property can be exempt from VAT, but this exemption does not apply when the lessor and the lessee have opted for VAT-taxed rent according to the written tenancy agreement. The Supreme Court dismissed the appeal in cassation as unfounded without further reasoning.
Source Taxlive
