Short-term rental of 24 furnished apartments leads to application of short stay exception

Ruling on Short-Term Rental Classification: The Arnhem-Leeuwarden Court of Appeal determined that the first short-term rental of 24 furnished apartments by X BV qualifies for the short-stay exception, as it competes with hotel services.
VAT Deductions Affirmed: The court upheld X BV’s deduction of 49.27% of the VAT on renovation costs, confirming that the furnished apartments are suitable for short stays without tenants assuming responsibility for the inventory.
Duration of Tenancy Considered: A rental period of three to five months was deemed consistent with short-term rental criteria, making the tenant’s social center of life irrelevant to the classification of the rental. The inspector’s appeal was dismissed.