- The District Court of Gelderland ruled that X and Y cannot deduct input VAT for the attic floor of their home, determining that there is no direct link between the house’s acquisition and the rental of the attic, which is considered an ancillary activity.
- The court highlighted that the primary purpose of acquiring the house was for living, and the attic’s mixed-use, including private activities, prevents opting for a taxed rental status.
- Consequently, the court rejected X and Y’s objections regarding the VAT refund for 2019 and 2020, affirming the inspector’s decision and deeming their claims unfounded.
Source: taxlive.nl
