- VAT rates for work on mixed-use buildings in the Netherlands changed on July 1, 2025, affecting insulation, painting, plastering, wallpapering and cleaning services
- Before July 2025, buildings used more than 50% for private housing could apply the 9% VAT rate to work on the entire building if older than two years
- The European Court of Justice ruled in January 2024 that reduced VAT rates should only apply to parts actually used for housing purposes
- From July 2025, the 9% rate only applies to residential portions, while non-residential areas get 21% VAT, and shared spaces are split proportionally
- Contractors must now carefully document the age and usage of different areas in mixed-use buildings to apply correct VAT rates and avoid payment issues
Source: btwinstituut.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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