- Short stay apartment rentals for three to five months are subject to VAT, allowing for input tax deduction.
- A company transforms an office building into 52 apartments, renting 24 furnished units for short stays.
- Rentals include energy, internet, and inventory, often for tenants in urgent need or awaiting permanent housing.
- Contracts specify temporary stays, with durations limited to three or five months.
- The company seeks VAT input tax deduction, which the tax inspector denies.
- The court aligns with EU VAT law, stating short-term furnished rentals compete with hotels and are not VAT-exempt.
- The nature of the service, not the tenant’s registration or purpose, determines VAT applicability.
- The company is entitled to input tax deduction for short stay rentals.
- Long-term rentals may have different tax implications, not addressed in this case.
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.
