Source Taxlive.nl (in Dutch)
Unofficial translation
Advocate General Ettema concludes that the house is not a property belonging to X vof’s business. It is important in this regard who has the power to dispose of the property as owner. In that case, X vof does not owe VAT for the private use of the home.
A and B, the two partners of the stakeholder, X vof, are married to each other and in 2006 jointly buy land on which they have a house built. The house is partly used for business purposes of X vof. X vof reclaims the VAT on the purchase and construction costs in full. In 2015, X vof will declare VAT on the private use of the home, but will object. The court ruled that X vof owes VAT on the private use. The court ruled not. The State Secretary is appealing.
Advocate General Ettema concludes that the house is not an asset belonging to X vof’s company and that no VAT is due for private use. It is important to know who has the power to dispose of the property as owner. In determining who has this power, according to the AG, the nature of the property purchased in relation to the nature of the business of the general partnership is particularly important. It is also important whether the good is used for the economic activity of the general partnership, which has been agreed in the general partnership agreement and the answer to the question whether, in view of agreements and invoices, among other things, the company has acted or not. The AG advises the Supreme Court to declare the appeal in cassation unfounded, but notes that the ruling of the court is inadequate to some extent.
