- The Dutch Supreme Court has provided a step-by-step plan for the VAT classification of land with remaining buildings.
- The case involved a plot of land with only a 96-meter-long wall remaining, which served as a retaining wall.
- The Supreme Court ruled that the remaining wall was negligible compared to the undeveloped part of the land, so the entire plot should be classified as undeveloped land.
- The classification of land as developed or undeveloped is relevant for VAT purposes, as the sale of developed land is generally exempt from VAT, while the sale of undeveloped land can be subject to VAT as a building site.
- The Supreme Court’s step-by-step plan provides guidance for the VAT classification of land with remaining buildings.
Source: meijburg.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.
