Lower VAT rate does not apply to rental of flat-bottomed boats, Court ruling, 21 December 2023

• X rents out classic flat-bottomed sailing vessels for typically one (mid)week periods.
• The vessels have various amenities such as sailing equipment, seating areas, sleeping accommodations, toilets, and cooking facilities.
• X owns a marina from which the rentals take place.
• The dispute in this case is whether X’s service can be classified as providing the opportunity for sports activities with the provision of a sports facility.
• The court rules that the amenities provided by X cannot be considered a sports facility on their own or together.
• X also does not have an exclusive course on the water, so there is no provision of a sports facility in that regard either.
• As a result, the reduced VAT rate does not apply to X’s services.

Source: nlfiscaal.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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