Explanation of transitional arrangement after increase in VAT rate for sale of new homes

• X entered into an agreement with B regarding the sale of newly built houses.
• B guaranteed to purchase any unsold houses at a fixed price.
• X issued an invoice to B in 2013, charging 19% VAT.
• The houses were delivered in 2014.
• The general VAT rate was increased from 19% to 21% on October 1, 2012.
• An transitional arrangement was introduced for houses sold under agreements made before April 28, 2012, with payment in installments.
• The old VAT rate of 19% applies to installments due before October 1, 2013.
• The tax authority did not apply the transitional arrangement and imposed VAT.
• The Court of Appeal ruled that the transitional arrangement does not apply to the agreement between X and B.
• The Supreme Court upheld the ruling, stating that the transitional arrangement only applies to agreements for the sale of houses, not agreements for the exercise of a sales option.

Source: nlfiscaal.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.

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