Rental of Workroom by Silent Partnership: Entrepreneurship Confirmed, VAT Deduction Denied Due to Private Use

• Partnership X as a VAT Entrepreneur: The Court of Appeal of ‘s-Hertogenbosch ruled that partnership X qualifies as a VAT entrepreneur, confirming its legal status regarding VAT obligations.
• Inability to Opt for VAT-Taxed Rental: Despite being recognized as a VAT entrepreneur, the court determined that partnership X could not opt for VAT-taxed rental of the office space because it failed to demonstrate that the office is not also used for private purposes.
• Independence and Economic Supply: The court noted that partnership X is independent from the BV and engaged in an economic supply. It referenced a CJEU judgment regarding the definition of taxable supplies, ultimately concluding that X’s appeal was unfounded and the inspector’s decisions regarding VAT deductions were upheld.

Source Taxlive

See also

• Flashback on ECJ Cases C-520/14 (Gemeente Borsele and Staatssecretaris van Financiën) – An authority providing transport services for schoolchildren is not a taxable person – VATupdate

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Rental of Workroom by Silent Partnership: Entrepreneurship Confirmed, VAT Deduction Denied Due to Private Use

• The partnership qualifies as a VAT entrepreneur with an economic activity.
• The option for taxed rental was not proven due to private use of the workspace.
• The rental of real estate is generally exempt unless specific conditions are met.
• The court found no conflict with the VAT directive regarding the exclusion of taxed rental for residential use.
• Member states have discretion in excluding certain transactions from taxed rental options.

Source: btwjurisprudentie.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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