Deductibility of VAT on construction costs for workspaces in home – Court ruling.

• A director-major shareholder who has an employment contract with a company where he owns more than half of the shares is not considered an entrepreneur for VAT purposes
• Using parts of a director-major shareholder’s own home for work purposes does not qualify as a separate activity for VAT purposes
• The burden of proof is on the taxpayer to show they are entitled to deduct input tax related to the construction and furnishing costs of workspaces in their home
• The use of workspaces and archive space in the home is controlled by the employment relationship, not a separate rental agreement
• The taxpayer does not qualify as an entrepreneur for VAT purposes in relation to renting out workspaces and archive space in the home.

Source: uitspraken.rechtspraak.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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