- The Dutch Supreme Court has referred two key VAT questions on real estate transactions to the CJEU, increasing uncertainty in the Dutch real estate market.
- The questions concern whether the TOGC regime can apply to VAT-exempt transactions and whether the seller’s intention matters for TOGC rules.
- The Court found that the Netherlands has not correctly implemented an EU VAT exemption, challenging Dutch rules that tax newly developed property within two years of first use.
- This development affects both VAT and real estate transfer tax (RETT), creating uncertainty about the continued applicability of RETT exemptions.
- Taxpayers are advised to review their VAT positions, consider risk mitigation strategies, and await further guidance from the CJEU and the Supreme Court.
Source: borgentax.com
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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