Real estate in a rented state can under certain circumstances be regarded as a generality of goods (“37d”) for VAT purposes, so that its transfer is not subject to the levy of VAT. This is often the case in real estate practice. There is still discussion about the application of the doctrine to the transfer of real estate that is short-let by a project developer. On 15 May 2020, the Supreme Court upheld the judgment of the Court of Appeal that Article 37d does not apply in such a case. However, the Arnhem-Leeuwarden Court of Appeal does regard the transfer of leased real estate by a project developer for VAT purposes in two recent cases as a transfer of a generality of goods.
Source PwC
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