- Recent court cases have focused on “in essence new construction” and construction sites in VAT.
- A case involving a thoroughly renovated building with significant investments did not qualify as “in essence new construction” because the changes did not affect the building’s structural integrity.
- The Advocate General concluded that only changes to the building’s structure can justify “in essence new construction.”
- The Court of Justice ruled that a site with newly laid foundations for homes is considered a construction site, not a new building, because the foundations alone are not usable.
- This ruling has limited impact on Dutch practice as both new buildings and construction sites are subject to VAT.
- The ruling’s implications for demolition situations are unclear, as the delivery of an “old” building is VAT-exempt, while the delivery of a construction site is subject to VAT.
Source: vanoers.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.
