A recent judgment focused on the VAT qualification ‘essentially new construction’ after a major renovation. In the case in question, a taxpayer had radically converted an existing office building into a hotel. Because the converted building was subsequently delivered to a third party, the question arose as to whether this conversion created new immovable property for VAT purposes and the delivery is therefore legally taxed with 21% VAT (and exempt from transfer tax under certain conditions).
Source BDO
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