Comments on ECJ C-243/23: ECJ Rules Against Belgian VAT Adjustment Rules for Renovations

• European Court of Justice condemns Belgian VAT adjustment rules for renovation work
• Ruling states that renovation work extending a building’s economic lifespan must be treated like new construction for VAT purposes
• Belgian rules differentiating between new construction and renovations conflict with European VAT Directive
• Background: VAT adjustment rules for capital goods, including buildings, have standard 5-year adjustment period
• Belgian rules allow for 15-year adjustment period for new construction, causing debate on what qualifies as new construction
• Case involves law firm undergoing extensive renovation work between 2007 and 2015
• Law firm claimed VAT revision based on 15-year adjustment period after VAT exemption for lawyers was abolished
• Tax authorities conducted audit and concluded VAT violations, resulting in VAT correction and rejection of adjustment for historical renovation work.

Source: VATconsult

See also

• C-243/23 (Drebers) – Judgment – Extended Adjustment Period for Immovable Property Works

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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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