- The Secretary of Finance applied the hardship clause to cases where economic ownership of building land is acquired before a VAT-taxed legal transfer, resulting in transfer tax being due.
- This sequence can cause unwanted double taxation (transfer tax and VAT).
- Under certain conditions, remission of transfer tax is approved if there is a close link between economic and legal ownership transfers, both qualifying as building land, and VAT is due at legal transfer.
- Conditions include legal transfer within three months, correct payment of transfer tax, and legal transfer before first use of the building.
- Similar cases can request remission from the Ministry of Finance if transfer tax payment is not yet final.
Source: taxence.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.
Latest Posts in "Netherlands"
- Most Dutch Municipalities Cannot Recover VAT on Asylum Housing Costs
- Dutch Municipalities Cannot Recover Most VAT Costs for Asylum Seeker Housing
- VAT aspects of the funding scheme for reception and housing in municipalities
- Customs warns: e-commerce declaration only possible with correct permits
- ECJ Grants VAT Exemption to Dutch DB Pension Funds on Asset Management Services
