- From 2026, a new VAT adjustment mechanism applies to investment services on immovable property.
- Investment services include substantial renovation or maintenance worth at least €30,000.
- The initial VAT deduction is no longer final in the year of first use; it is monitored for four additional years.
- Each year, the taxable vs. exempt use ratio must be reassessed.
- If the ratio changes by more than 10%, the initially deducted VAT must be adjusted.
Source: taxand.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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