Court Allows Partial VAT Deduction for New Complex Construction Costs; Appeal Partially Successful

• The court ruled on a case regarding value-added tax on August 15, 2025.
• The inspector allowed a deduction for input tax related to construction costs of a new complex during the appeal phase.
• The appeal was upheld, but no deduction was allowed for another part of the complex due to lack of evidence of taxable use.
• A penalty was reduced due to exceeding a reasonable time frame.
• Article 11 of the VAT Act outlines conditions for tax exemption on property rentals.
• Article 15 specifies conditions for input tax deduction based on the use of goods and services for taxable activities.
• The court determined that property rental is generally exempt from VAT unless specific conditions are met.

Source: uitspraken.rechtspraak.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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