Applicability of Article 19 VAT Directive 2006 to Sale of VAT-Exempt Residential Apartment Complex

• The appeal challenges the Court’s focus on the object transferred rather than the nature of the transferor’s economic activity for applying article 37d of the law.
• The appellant argues that the project developer’s main activity was project development and sale, not property investment, and that rental was only to increase sales value.
• The Court allegedly failed to consider that the transferor acted as a project developer, and the property was part of the developer’s inventory, not an investment asset.
• The central cassation question is whether the Court was correct in annulling the additional tax assessment and whether article 19 of the VAT Directive 2006 applies to goods used exclusively for VAT-exempt economic activities, such as residential leasing.

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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