- Case Background: X B.V. purchased shares in a real estate company owning a renovated building, questioning whether the renovation was significant enough to classify the building as “new” for transfer tax exemption eligibility.
- Court of Appeal Ruling: The Amsterdam Court of Appeal ruled that the renovation did not qualify as “essentially new construction,” denying X B.V. the transfer tax exemption based on interpretations of the VAT Directive and previous Supreme Court clarifications.
- Supreme Court Decision: On January 31, 2025, the Supreme Court upheld the lower court’s decision, affirming that a renovation must materially change the building to be considered “new” for tax purposes, aligning with European directives and relevant case law.
Source BTW jurisprudentie
See also
- ECJ C-239/22 (Belgian State and Promo 54) – Judgment – Condition of the first use of a building – VATupdate
- ECJ C-308/16 (Kozuba Premium Selection sp. z o.o.) – Exemption for the supply of a building or parts thereof, and of the land on which it stands – VATupdate
- ECJ C-243/23 (Drebers) – Judgment – Extended Adjustment Period for Immovable Property Works – VATupdate
- ECJ C-594/23 (Lomoco Development and Others) – Judgment – Supply of land with foundations is ‘building land’ – VATupdate
