The current VAT regulations allow for tax savings through a “short stay structure” by renting out homes after a major renovation and deducting the VAT on the renovation. To address this, the government has proposed draft regulations that extend the adjustment scheme to services for immovable property of at least €30,000. This will require entrepreneurs to track and correct the initial VAT deduction over four years. The proposal aims to make the tax-saving structure less attractive and create a more level playing field for real estate entrepreneurs. There will be a transitional period before the measure comes into force, and stakeholders can provide input through an internet consultation, with a stakeholder meeting planned for further discussion.
Source Rijksoverheid.nl
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