No VAT for the disposal of privately acquired property: a case-by-case evaluation for renovation works

• Transfer of assets from private to business use may not be subject to VAT
• The use or consumption of assets for personal purposes may not be considered a relevant operation for VAT purposes
• The exclusion from VAT applies to properties acquired from private individuals, acquired before 1973, or acquired from exempt businesses
• The exclusion from VAT also applies to properties that have undergone repair and renovation works, even if VAT was deducted for these works
• Works must not result in the creation of a new property or a separate unit within the property for VAT exclusion to apply
• If works have been carried out on the property and VAT was deducted, VAT should only be applied if the works have increased the value of the property
• If the operation of transferring the asset is not considered relevant for VAT, the taxpayer must consider the provisions for adjusting VAT deduction
• Maintenance and repair expenses that have allowed VAT deduction should be adjusted if they have not exhausted their usefulness and have increased the value of the asset when it is taken out of the business for non-business purposes.

Source: eutekne.info

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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