VAT on Utilities and Service Costs in Rental Properties

• Rental and VAT on utilities and service costs
• Each service is subject to VAT separately, including rental of real estate
• Rental of residential properties is always VAT exempt, while rental of commercial properties may be subject to VAT if opted for
• Additional services like utilities and service costs are generally subject to VAT
• Exceptions may apply if the tenant is required to use services from the landlord and has no control over usage
• Some services, like maintenance of common areas in apartment complexes, may be included in the rental agreement
• A recent decision by the Ministry of Finance will change the treatment of service costs in rental agreements for residential properties
• Landlords have until January 1, 2025 to adjust their rental agreements to comply with the new policy.

Source: efkbelastingadviseurs.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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