Guidelines for VAT Rates on Mixed-Use Properties Effective July 1, 2025

• The Dutch Tax Authority provided guidance on VAT rules for mixed-use buildings effective July 1, 2025.
• VAT rules for certain work in mixed-use buildings have changed.
• Before July 1, 2025, if more than 50 percent of the building was used for private residence, the 9 percent rate applied to the entire building.
• After July 1, 2025, the 9 percent rate only applies to the residential part.
• The guidance explains the types of work, what mixed-use buildings are, and the impact of the change.
• Work covered includes insulating, painting, plastering, and wallpapering homes older than 2 years, and cleaning homes regardless of age.
• Mixed-use buildings have both residential and other functions, such as commercial.
• Types include live-work buildings, residential buildings with shared spaces, and mixed-use facilities like care homes.
• Until July 1, 2025, if more than 50 percent was for private residence, the 9 percent rate applied to the whole building.
• After July 1, 2025, the 9 percent rate applies only to the residential part, and 21 percent applies to other functions.
• Shared spaces used for both purposes must be divided for VAT purposes.
• The Tax Authority advises identifying the functions of different spaces to apply the correct VAT rate.

Source: taxlive.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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