Renting out an apartment: register for actual use or not?

• A circular letter from the tax authorities has caused confusion regarding whether mixed taxpayers who rent out exempt properties need to submit a notification for the actual use VAT deduction method.
• The circular letter states that mixed taxpayers who apply the general pro-rata and fully taxable persons who occasionally engage in activities referred to in Article 13 of Royal Decree No. 3 do not need to submit a notification for the actual use method.
• However, there is debate regarding what constitutes a specific economic activity and what does not. The case law of the Court of Justice suggests that a lawyer renting out an apartment should not be required to submit a notification for the actual use method, even if the rental is not an occasional transaction.

Source VATConsult

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