- The court ruled that the transformation costs from an outdated house to a luxury villa are not deductible.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.
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