VAT on costs of transforming national monuments into homes is deductible

• The Zeeland-West-Brabant District Court has ruled that X is entitled to a VAT refund on the development costs of an estate where seven national monuments are being converted into homes.
• X and other parties incurred project development costs, which were discounted by contractor D in the prices charged to private buyers.
• X is allowed to fully deduct the VAT on these project development costs.
• The dispute revolves around the VAT deducted on the estate’s development costs.
• The court ruled that X is entitled to this refund because there is a direct link between the services provided and the compensation paid, which are subject to VAT.
• The VAT charged to other parties on the development costs follows the same fate as the input tax charged to X.
• This case was dealt with together with other judgments by the same court on September 13, 2023.

Source Taxlive

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