- The reception of Ukrainian refugees by municipalities is considered a statutory government task and is not subject to VAT.
- The specific grant received by municipalities for this purpose is not regarded as payment for an economic service and is VAT-exempt.
- Rental of accommodations for refugees is taxed at the reduced VAT rate until December 31, 2025; from January 1, 2026, it will be taxed at 21% VAT.
- 30% of the VAT on costs covered by the specific grant can be compensated via the VAT Compensation Fund; the remaining 70% is non-deductible and increases costs.
- An exception applies to transition costs, where VAT is 100% non-deductible.
Source: efkbelastingadviseurs.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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