- Municipalities often incorrectly pay VAT on the rental of storage facilities for election materials. Generally, property rental is VAT-exempt unless the tenant uses it for at least 90% VAT-taxable activities, which is not the case for elections. Municipalities act as government entities, not VAT entrepreneurs, so VAT should not be charged. However, landlords often mistakenly charge VAT, leading to municipalities paying 21% extra in rental costs, which cannot be reclaimed. An exception exists if election materials are stored without a specific area assigned to the municipality, classifying it as a storage service subject to VAT, which can be compensated.
Source: efkbelastingadviseurs.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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