- The court ruled that the transformation costs from an outdated house to a luxury villa are not deductible. Although the EU legal defense principle was violated, this did not lead to the annulment of the additional tax assessments. X BV failed to prove that the decision-making process would have been different without the violation. The Supreme Court dismissed the appeal without further reasoning. The renovation costs were deemed non-business-related, and the VAT pre-tax deduction was not allowed. The additional tax assessments remain in place.
Source: taxlive.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.
Latest Posts in "Netherlands"
- Thrift Shops Return to Court Over VAT Collection Dispute
- Customs Court Rules Doctor Role Play Set as Toys, Not Clothing
- Adjustment of VAT deduction for services on immovable property: What can you still do?
- Government Responds to Questions on VAT Increase Impact Analysis for Accommodation
- Heijnen Maintains VAT Increase on Accommodation Despite Predicted Revenue Loss