VAT fully charged on the delivery of building plots with nature and construction destination

• The delivery of each individual plot qualifies as one service
• One VAT regime applies to these deliveries
• The deliveries are correctly subject to VAT
• X cv purchases a former campsite and divides it into ten plots for detached houses
• Approximately 75% of each plot is designated as a nature reserve and cannot be built on
• X cv charges VAT for the delivery of three undeveloped plots
• The dispute is whether the delivery of the plots is partially exempt from VAT
• X cv argues that there are two services: the taxable delivery of a building plot and the exempt delivery of a nature reserve
• The tax authority argues that there is one service: the taxable delivery of a building plot
• The court rules that each plot is one property sold by one seller to one buyer for one price in one deed of delivery
• It is not possible to buy only the building plot or only the nature reserve
• Selling the nature reserves separately is not possible due to lack of interested buyers
• The nature reserve is considered incidental to the main service, as obtaining a nature reserve is not the buyer’s main goal
• The court agrees with the tax authority’s position.

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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