The government is evaluating tax schemes and has opened an internet consultation on a draft bill regarding VAT adjustment rules on real estate services. The current VAT regulations allow for tax savings through short-term rentals, but the government sees this as creating an uneven playing field in the rental sector and has proposed changes. The proposed change extends the VAT adjustment scheme to services of at least €30,000 in immovable property, making the tax-saving structure with short-term rentals less attractive. The new rules are set to enter into force on 1 January 2026.
Source Baker Tilly
