No VAT deduction on vacant property if estate agent is instructed to rent out ‘short-stay’ (art. 81 RO Act)
- VAT Classification and Rental Intent: The Court of Appeal of The Hague ruled that an empty house is considered used for VAT-exempt purposes, despite X’s attempts to rent it out for short stays, as the intention to operate under VAT was not sufficiently demonstrated.
- VAT Revision and Retroactive Levy: X faced a 10% VAT revision for the years 2014-2018, as the Tax and Customs Administration determined that the property was VAT-exempt starting from 2010, thus validating the revision based on earlier established VAT rules.
- Outcome of Appeal: The Supreme Court dismissed X’s appeal without further justification, affirming the lower court’s decisions, including the rejection of claims of discrimination and the allowance of corrections based on X’s input tax deduction disputes.
Source Taxlive
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