In this case, a man and a woman form a partnership together. They have a house built, of which they rent the office on the third floor to a BV (legal entity), which is fully owned by the man. The BV and the partnership opted for taxable rental, and the partnership deducts part of the VAT on the construction costs of the home.
The inspector refused the VAT deduction. According to the District Court of Zeeland-West-Brabant this is correct, because the partnership does carry out an economic activity with regard to the rental, but does not demonstrate that the rented property is used almost entirely for business purposes.
Source: fiscount.nl (summary)
Source: Rechtspraak.nl (full case)
Latest Posts in "Netherlands"
- No rental-plus in case of subletting to conservatory
- Knowledge group: rental of solar roof project does not qualify as rental of immovable property
- Agricultural standards for VAT for private use 2025 in last VAT return 2025
- Annual VAT Corrections in the Netherlands: Understanding the BUA and Private Consumption Rules
- Follow-up Questions on VAT Increase Impact Analysis for Accommodation: Dutch Senate Finance Committee
