A partnership (X), consisting of A and B, rented a portion of their home to a private company (bv) in which A is a shareholder. X sought to deduct the input VAT on the construction costs of the house, but the Inspector denied this deduction. The Court of Appeal in Den Bosch ruled that the rental also qualifies as private residential use, thus precluding taxable rental. Furthermore, the rental of the parking space was also considered part of the exempt residential rental. Consequently, the deduction of input VAT was rightfully refused, and the appeal was dismissed.
Source: nlfiscaal.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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