VAT Entrepreneurship in Private Sale of Residential Building Plots: Recent Court Rulings and Implications

• Increasing legal cases question if individuals selling residential plots act as VAT entrepreneurs
• If so, VAT is due and transfer tax may be exempt under certain conditions
• Recent European Court ruling: couple selling private agricultural land as building plots qualifies as VAT entrepreneurs
• Actions taken included converting land to building plots and purchasing additional land for access roads
• Amsterdam Court confirms previous ruling: taxpayer assumed obligations and risks inconsistent with private asset management
• Selling remaining plots indicates a sustainable pursuit of profit
• Determining VAT entrepreneurship in plot sales is case-specific and fact-dependent
• Recent rulings suggest VAT entrepreneurship occurs more often than parties initially believe
• Important to assess this in advance to avoid VAT reassessment, interest, and penalties

Source: vanoers.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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