Limits on VAT deduction for residential buildings clarified by the Tax Agency

• VAT deduction for residential buildings is limited if not intended for hospitality activity
• VAT paid for purchase of residential property for rental under taxable regime is not deductible
• A municipality acquiring social housing units in bankruptcy proceedings will be subject to 10% VAT
• Municipality seeks confirmation from tax agency on VAT regime for leasing social housing units
• Tax agency confirms public entity managing real estate is VAT liable if has specific resources
• Municipality opts for taxable regime for leasing social housing units, subject to 10% VAT
• VAT paid during purchase and leasing of buildings is not deductible if not for hospitality use

Source: eutekne.info

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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