- Initial Sale and Dispute: In 2019, a company sold two plots, one of which (plot 3279) contained a monumental garden. The tax inspector deemed this plot as building land and imposed additional VAT, which the company contested, arguing it was built-up land.
- Court Rulings: The District Court of Gelderland ruled against the company, declaring the plot as building land. The company appealed to the Arnhem-Leeuwarden Court of Appeal, which also ruled that the plot qualifies as building land due to the minor significance of existing structures (bicycle shed, asphalt path, pavement) relative to the total area.
- Final Judgment and Legal Basis: The Court of Appeal upheld the District Court’s decision, stating the monumental garden does not belong to the buildings and dismissing the company’s reliance on the principle of legitimate expectations, as there was no partial demolition involved. The case was judged under article 11, sixth paragraph of the VAT Act 1968.
Source Taxence
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