The District Court of Gelderland ruled that the rental of the holiday home is subject to VAT, allowing X to deduct the VAT on the renovation and furnishing costs. X, a personal holding company, rented out the furnished holiday home to A for a year, with A having exclusive use. A stayed in the house for a total of 32 days during the rental period. The court applied the short-stay exception of the VAT Act, stating that the duration of the actual stay determines the VAT consequences, even for leases longer than six months.
Source Taxlive
