- Tax Appeals Board Decision No. SKNA4-2024-59 clarifies VAT deduction rules for shared rentals.
- Landlord leased office space to a company that sublet part to its subsidiary.
- Tax Office granted partial VAT deduction, excluding sublet areas and shared common areas.
- Taxpayer appealed, arguing VAT deduction shouldn’t be reduced for shared common areas.
- Tax Appeals Board ruled:
- VAT deduction only applies to areas exclusively used for tenant’s taxable activities.
- Deduction was properly reduced for subsidiary’s share of property and common areas due to non-taxable business activities not sufficiently connected to tenant’s taxable activities.
Source: news.bloombergtax.com
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.
