Court Rules Short-Stay Apartment Rentals Subject to VAT, Allowing Tax Deduction for Renovations

• A company bought a farmhouse in 2018 and converted it into five apartments
• Initially intended to sell the apartments, but decided in 2022 to rent them furnished to students and expats
• The company claimed the short-stay exception applied and deducted VAT on renovation costs
• The tax inspector disagreed, considering it exempt rental and denied VAT refund
• The court determined the rental was similar to hotel or vacation rentals, qualifying for the short-stay exception
• The rental is VAT-taxable, allowing the company to claim a VAT refund

Source: fiscount.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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