- Ruling on VAT Deductibility: The Amsterdam Court of Appeal determined that the VAT on general costs cannot be deducted based on the actual use of floor space, as the fiscal unity X failed to provide objective and precise data to support its calculation of VAT deduction rights.
- Context of the Case: X rents out self-storage boxes, with rentals to private individuals being VAT-exempt, while those to entrepreneurs are typically VAT-taxed. The court noted that both business and private customers utilize common areas, complicating the argument for VAT deductions based on exclusive use.
- Supreme Court’s Decision: The Supreme Court upheld the appeal’s dismissal without additional justification, affirming the lower court’s ruling that the actual use of common areas could not be accurately determined, thus reinforcing the decision regarding VAT deduction eligibility.
Source Taxlive
