- Court case involves X, a VAT entrepreneur who owns a property previously used as a residential and retail space
- In early 2022, X began renovating the property, creating seven apartments and a retail space
- Both the retail space and apartments were rented and occupied in the third quarter of 2022
- X claimed VAT deductions on the renovation costs, resulting in refund requests
- Refunds were approved only for the VAT related to the retail space
- The dispute centers on whether the apartments are intended for or used for VAT-taxable purposes
- X argues for the application of the short-stay exception under a specific VAT law
- The Court of Zeeland-West-Brabant ruled that X provides accommodation that competes with hotels and holiday businesses
- The court considered the rental duration limited to a maximum of six months and the apartments being fully furnished
- The court found that X competes in a similar manner to hotels and holiday businesses
- X qualifies for the short-stay exception, making the rental taxable
- The court ruled in favor of X’s appeal
Source: nlfiscaal.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.
