Deductibility of transformation costs for national monuments to housing

• A fiscal unity consists of three companies involved in the development of an estate
• Seven national monuments are being transformed into homes
• One of the companies provides both VAT-exempt built-up plots and apartment rights, as well as VAT-taxable undeveloped building plots and apartment rights
• The company deducts VAT on costs directly related to taxable supplies
• VAT on costs not directly attributable to taxable or exempt supplies is deducted pro rata based on the destination of the real estate at the time the VAT is charged
• The company determines the pro rata of VAT on costs based on the budget with future taxable and exempt supplies
• The inspector believes that the company should base the pro rata on the ultimately realized supplies and denies VAT refund
• The court rules that the company has correctly determined the VAT deduction on transformation costs
• VAT refund must be granted.

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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