- The District Court of Gelderland has ruled that short-term furnished rental is subject to 9% VAT, even if tenants register with the BRP at that address.
- VAT on renovation costs is deductible based on surface ratios. X bv bought an office building in 2019 and renovated it into 52 apartments, renting 28 unfurnished and 24 furnished apartments for short periods.
- The construction company, previously part of a fiscal unity with X bv, did not pay the VAT charged and went bankrupt in 2022.
- X bv partially deducted VAT on construction costs and paid 9% VAT on short-term rental turnover.
- The court ruled that X bv was entitled to deduct input tax on short-term rental because it was for furnished accommodation with utilities and minor maintenance normally the tenant’s responsibility.
- The deduction was correctly calculated based on actual use and surface ratios.
Source Taxlive
