Update of Real Estate VAT Decision by the State Secretary of Finance

• The State Secretary of Finance has updated the Decision on real estate turnover tax.
• The update was made in response to changes in legislation, new case law, and the VAT regulation.
• The decision provides clarifications on various topics, including the classification of brick paving, the function of a building during demolition, building rights, the assessment of VAT regime in the transfer of an apartment right, determining the first use, the interaction between turnover tax and transfer tax, the transfer of an apartment right for a building yet to be constructed, the application of the 90% threshold when the buyer uses the small business scheme, and the VAT consequences of establishing limited rights.
• The decision also includes a new approval allowing the establishment of limited rights to be considered as a sale.
• The approval for the start date of the option for taxable rental has been expanded.
• Some approvals have been discontinued, and the conditions for certain approvals have been changed.
• The decision will come into effect on January 1, 2024.
• Relevant legislation: Article 11 of the Value Added Tax Act 1968.

Source: taxlive.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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