AG Supreme Court: Transfer of Short-term Leased Care Complex – TOGC

• Advocate-General Ettema concludes that article 37d of the VAT Act 1968 may apply to the transfer of a rental business
• X BV purchases land in 2017 and leases it for a long period, then rents out a VAT-exempt care complex to a foundation
• The ownership of the complex is transferred without VAT being charged, based on article 37d of the VAT Act 1968
• The Court rules in favor of X BV, stating that the transfer is not a VAT-taxable supply of a new immovable property
• The State Secretary appeals the decision, arguing that the economic activity of X BV is ‘project development’ and the buyer does not intend to continue this activity
• Advocate-General Ettema advises the Supreme Court to dismiss the State Secretary’s appeal, explaining the concept of a rental business and the necessary elements for its continuation.

Source: taxlive.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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