- The Ministry of Finance published amendments to the VAT Real Estate Decree on December 17, 2025, mainly due to new case law and changes to the reduced VAT rate for accommodation effective January 1, 2026.
- The definition of “building” for VAT purposes has been narrowed, removing references to unfinished constructions like foundations as buildings.
- The definition of “undeveloped land” has been broadened; partially demolished buildings that no longer serve a building function and land with only old piles are now considered undeveloped for VAT.
- These changes mean that, in practice, land will more quickly qualify as undeveloped for VAT purposes, requiring case-by-case assessment.
- The explanation that tenant fit-out work constitutes first use for VAT has been removed, making it less likely such activities will be seen as first use under VAT rules.
Source: meijburg.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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