The Supreme Court has ruled that the VAT rate of 21% applies to agreements aimed at the delivery of a home, and not to purchase guarantee agreements. X bv, involved in a construction project of 162 homes, disputed whether the VAT rate of 19% or 21% applies to their purchase obligation agreement with foundation A. The Court of Appeal ruled that the VAT rate of 21% applies as X bv did not exercise the sales option before September 30, 2013. The Supreme Court confirmed this ruling, stating that the transitional measure only applies to agreements aimed at supplying a home, and not to agreements establishing the right to exercise a sales option.
Source Taxlive
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