Appeal Court of The Hague: Taxpayer’s right to deduct input VAT on renovation costs

• The case involves a dispute over the deduction of input VAT.
• The taxpayer must prove that they are entitled to deduct the VAT.
• The tax authority argues that the taxpayer did not provide sufficient evidence to support the deduction.
• The court finds that the taxpayer has met the requirements for deduction and is entitled to deduct the VAT.
• The court considers the taxpayer’s involvement in a collaboration agreement and the renovation of a property.
• The court also considers the invoices provided by the taxpayer and the intention to rent out the renovated property.
• The court concludes that the taxpayer has provided enough evidence to support the deduction of VAT.
• The court also finds that the rental of the property would be a taxable activity.
• The court rejects the tax authority’s argument that the taxpayer should have conducted further investigation into the VAT position of the other party involved in the collaboration agreement.

Source: uitspraken.rechtspraak.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.