- Short-stay rental of fully furnished apartments for up to six months is subject to VAT
- The company is entitled to deduct input tax
- A company bought a historic farmhouse in 2018 and converted it into five apartments
- Initially planned to sell the apartments, but decided to rent them on a short-stay basis in 2022
- Rentals target temporary residents like expats and students
- The tax inspector denied the input tax refund, claiming the rental was VAT-exempt
- The company argued the rental falls under the short-stay exception
- The court ruled the rental competes with the hotel industry and is subject to VAT
- The company can deduct input tax on renovation costs
- The appeals were successful
Source: taxence.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.
