Court Ruling on VAT Exemption for Short-Term Property Rentals in Hospitality Sector

• The court case is from Gerechtshof Arnhem-Leeuwarden, dated 01-07-2025.
• Article 11 of the Wet OB exempts the rental of immovable property from tax, except for short-term stays in hotels, pensions, camps, and vacation businesses.
• Article 135 of the Btw-richtlijn provides similar exemptions and exclusions for accommodation in hotels and similar sectors.
• The EU Court of Justice in the Blasi case stated that exceptions to rental exemptions should not be interpreted strictly.
• The term sectors with a similar function should be interpreted broadly to ensure temporary accommodations are taxed like hotels.
• The Hoge Raad noted that the function of a hotel includes additional services like cleaning and providing linens and breakfast.
• The exemption in Article 11 of the Wet is based on Article 13 of the Sixth Directive, ensuring proper application and preventing fraud.

Source: uitspraken.rechtspraak.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.