Temporary furnished rental apartments after major office building renovation – 9% VAT

• A construction company in the Netherlands is converting an office building into residential apartments.
• They are temporarily renting out 24 of the 52 apartments furnished for 3 to 5 months.
• The company is able to claim VAT deduction on the renovation costs based on the actual use of the temporarily rented apartments.
• The rented apartments are subject to VAT under the short-stay exception.
• The company has correctly claimed the VAT deduction.
• The low VAT rate applies to the short-term furnished rental, allowing the company to deduct VAT on the construction costs.
• The later transition to long-term (exempt) rental of the apartments does not change this.
• The current VAT rules do not provide a way to revise the deducted VAT.
• The expected revision scheme for costly (renovation) services is not included in the Tax Plan 2024.

Source: fiscount.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.