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Wall with an important function keeps sales VAT-free

If, after the demolition of a building, a wall remains that fulfills an important function for future use, this is not a building site.

In 2002, a company that developed housing projects acquired ownership of a plot of land. An old candy factory stood on the ground. The BV had the factory building demolished because it wanted to build a number of houses on the plot. A side wall of the factory was left standing and a number of foundation piles were left in the ground. In 2006, the planned construction of an apartment complex took place. But the construction of twelve single-family homes was canceled. The BV therefore sold the undeveloped land, on which the wall still stood, to another BV in 2016. In doing so, they did not consider the sold plot to be a building site. The buyer had ten houses built on the plot. The old wall functioned as a garden partition and outer wall of the newly built garages.

Source Taxence

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