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Court Ruling Allows VAT Refund on Furnished Short-Term Rental of New-Build Homes

    A recent court ruling allows for VAT refunds on construction costs for temporarily and furnished rented new-build homes, treating them similarly to hotel accommodations. This decision, made by the Arnhem-Leeuwarden Court of Appeal, impacts developers and temporary housing landlords. The case involved a real estate company that converted an office building into apartments, some of which were rented short-term. The court ruled that this type of rental is an exception to the usual VAT exemption for housing rentals. The tax authorities may still appeal to the Supreme Court. Notably, the construction company involved went bankrupt without paying the VAT, yet the refund was granted to the real estate company.

Source: fiscaalvanmorgen.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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