Recent case law in the Netherlands: X rents out music studios that are fully equipped. The use includes gas, water, electricity, cleaning, heating and WiFi. In addition, X optionally also offers promotion, marketing and advertising via its website and social media. In 2015, the studios were rented by 3 parties for the entire year. They have an exclusive right to use their assigned studio.
The inspector states that there is an exempt lease of immovable property and deducts the input tax for 2015. According to X, there is a rental plus tax subject to turnover tax. The court agrees with X. The inspector appeals.
The Court (Hof ‘s-Hertogenbosch) ruled that there is an exempt rental. X submits insufficient evidence showing that the other activities are not merely incidental, so that it cannot be established that there is a rental plus. The appeal is well-founded.
Source Taxlive.nl
Latest Posts in "Netherlands"
- VAT and School Building Transfers: Economic Activity, Consideration, and Legal Certainty in Dutch Case Law
- New policy note on intermediation in share transactions
- No Excuse for Unpaid VAT Without Filing Invitation; Fine Upheld but Reduced to €1,500
- No VAT Deduction for Exempt Rental by Partnership to BV, Court Den Bosch 2025
- Penalty for payment of additional VAT assessment reduced due to incidental negligence
