The article discusses the conditions for the sale of renovated properties with VAT in the real estate market. The case of Promo 54 and Immo 2020, where the Belgian tax authorities considered the split transaction of a renovation project to be an unlawful tax advantage, is used as an example. Promo 54 challenged this before the court of first instance of Liège, which rejected its claim, followed by the Liège Court of Appeal against which Promo 54 has lodged an appeal in cassation. The Court of Cassation submitted a preliminary question to the European Court of Justice regarding whether a renovated building can be considered a new building and therefore exempt from VAT. The European Court of Justice ruled that if the supply of an old building that has undergone renovation generates added value, it meets the criterion of first occupation for new construction. The article also mentions the Kozuba judgment of the Court of 16.11.2017, which further defined renovation as a building that has undergone significant changes intended to change its use or substantially change the circumstances in which it is occupied.
Source Jubel.be
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