- The District Court of The Hague has ruled that X BV’s rental of squash and padel courts to private athletes qualifies as an exempt rental of immovable property, overturning a previous settlement where X BV paid 9% VAT.
- The court found that the rental grants athletes an exclusive right of use for a specific time, with X BV providing minimal additional services beyond passively making the court available.
- This decision clarifies that even though the courts are used for sports, the absence of active supervision or extensive additional services means the activity falls under VAT-exempt property rental.
Source Taxlive
VAT exemption applicable to squash and padel court rental
- The District Court of The Hague ruled that renting squash and padel courts to private individuals qualifies as a VAT-exempt rental of real estate, not as a sports service subject to the reduced 9% VAT rate.
- The court’s decision was based on CJEU case law (Stockholm Lindöpark and Régie communale autonome du stade Luc Varenne), which defines the essential characteristic of real estate letting as granting the tenant exclusive use of the property for a specific period in exchange for a fee.
- The court found that the private athletes renting courts obtain this exclusive right, and the availability of passive facilities like changing rooms, showers, and incidental access to catering staff does not constitute additional services that would negate the real estate rental classification.
Source BTW Jurisprudentie
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