- The decision on VAT deduction is updated as of July 1, 2025
- The Secretary of Finance clarifies rules for VAT deduction rights focusing on investment goods, stock transactions, and special situations
- The update is due to case law, policy changes, and textual improvements
- The decision explains and approves specific situations for determining VAT deduction rights
- It references national and European case law
- The legal framework for VAT deduction is based on the 1968 VAT Act and the VAT Directive
- Entrepreneurs have the right to deduct input tax if it is attributable to taxable transactions
- There must be a direct and immediate link between acquired goods or services and the entrepreneur’s taxable activities
- The use for economic and non-economic activities determines the deduction extent
- Mixed use requires allocation keys for an objective and real view of actual use
- Specific rules for investment goods include a longer revision period: four years for movable goods and nine years for immovable goods
- Entrepreneurs can allocate investment goods to business assets affecting VAT deduction rights and revision
- New integration of rules for stock transactions distinguishes between actions within or outside VAT scope
- Stock sale compensation can remain outside pro rata for VAT deduction if it is an incidental financial transaction
- The location of the buyer is determined by the stock exchange’s location
- Approvals for specific situations include partnerships, business associations, and employee use of public transport cards
- VAT deduction for vacant real estate requires substantiation with objective data for intended taxable use
Source: taxence.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.
