- A construction company in the Netherlands is converting an office building into residential apartments.
- They are temporarily renting out 24 of the 52 apartments furnished for 3 to 5 months.
- The company is able to claim VAT deduction on the renovation costs based on the actual use of the temporarily rented apartments.
- The rented apartments are subject to VAT under the short-stay exception.
- The company has correctly claimed the VAT deduction.
- The low VAT rate applies to the short-term furnished rental, allowing the company to deduct VAT on the construction costs.
- The later transition to long-term (exempt) rental of the apartments does not change this.
- The current VAT rules do not provide a way to revise the deducted VAT.
- The expected revision scheme for costly (renovation) services is not included in the Tax Plan 2024.
Source: fiscount.nl
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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