Sale of Building Plots with Development Obligations Subject to VAT, Court Rules Entrepreneurial Activity

• A woman bought a property in 2015 with a house, garden, pasture, and outbuildings.
• In 2019, she made an agreement with the municipality to develop four building plots.
• She committed to creating a building program, preparing the land, drafting a subdivision plan, and paying a development contribution.
• She sold two plots in 2019 and 2021, transferring her rights and obligations to the buyers.
• The tax inspector considered her actions as those of a VAT entrepreneur since the plots are building sites and subject to VAT.
• The court ruled that her actions went beyond managing private assets, indicating VAT entrepreneurship.
• The remaining plots were purchased after the relevant periods, showing a sustainable pursuit of profit.
• The VAT assessments for 2019 and 2021 remain valid.

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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