Tax Deduction for Mixed Rental Storage Units: Pro Rata Method Prevails Over Actual Use

• The tax authority imposed additional assessments on a fiscal unit renting storage boxes to both businesses (taxable) and individuals (exempt).
• Most revenue, between 57 percent and 71 percent, came from exempt rentals to individuals.
• The issue was how much input tax the fiscal unit could deduct for goods and services used for both types of rentals.
• The tax authority argued for a deduction based on revenue ratios (pro rata method), as there was no objective way to allocate all general costs.
• The fiscal unit claimed a higher deduction based on actual use, using square meters and access system data as evidence.
• Both the North Holland Court and Amsterdam Court of Appeal ruled against the fiscal unit, finding no verifiable data for actual use.
• The courts rejected the claim that general areas were solely for taxable rentals, as individuals also used them.
• The access system data was deemed unusable, as usage rights did not depend on actual use frequency.
• Not all companies within the fiscal unit were included in calculations.
• The Supreme Court dismissed the fiscal unit’s appeal.

Source: btwjurisprudentie.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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