In a recent case before the Dutch Supreme Court, the question was raised if a yacht can qualify as ‘sports facility’, subject to the reduced VAT rate.
X describes its activities as ‘fractional sailing’. This means that X makes sailing yachts available for a fee on the basis of an annual subscription. X rents permanent moorings for the yachts in two marinas. The marinas have various facilities including toilets, showers, water and electricity supplies for on board, waste depots, green areas and parking spaces.
It was disputed before the Court of Appeal in The Hague whether X’s services can be regarded as ‘providing an opportunity to practice sports’ and whether they are therefore subject to the reduced VAT rate. According to the Supreme Court, that is the case.
According to the Supreme Court, providing the opportunity to practice sports may also occur when the actual sports take place wholly or partly on public property, provided that this is accompanied by the provision of accommodation that is used by the athletes. with a view to the preparation for practicing the sport and/or its completion. The marinas in question, with the facilities available there and their use by season ticket holders before and after sailing, meet these criteria.
Furthermore, the established facts show that the cabin yachts are all sailing yachts. It is common knowledge that sailors are required to engage in physical activity that is not negligible, even when sailing for recreational purposes.
Source: nlfiscaal.nl
