- The Arnhem-Leeuwarden Court of Appeal determined that the sale of a house by X was conducted within the framework of entrepreneurship and was therefore subject to VAT, as the office building was classified as mandatory business assets.
- X owned an office building that had been rented out tax-exempt from 2002 to 2012 and sought to modernize the property after being informed of necessary upgrades.
- In 2014, X collaborated with a construction company to convert the office building into two houses and planned to build a semi-detached house on the property’s rear lot.
- The District Court of Gelderland initially ruled that X was not a VAT entrepreneur for the sale of the house, claiming X’s VAT entrepreneurship ended in 2014 after the tenant vacated the office building.
- The Court of Appeal overturned this ruling, highlighting that the absence of private use meant X had no discretion in labeling the property, reaffirming that the entrepreneurial activities continued through the transformation and sale of the residential units.
Source Taxlive
