- Upholding of Short-Stay Exception: The Arnhem-Leeuwarden Court of Appeal upheld the District Court’s decision that X BV is entitled to apply the short-stay exception based on the confidence derived from the Real Estate Decree, allowing for input VAT deductions despite the rental period exceeding six months.
- Background of the Case: X BV, having purchased and renovated a house, rented it to its DMS for a total of 32 days over a year. Although the inspector contested the right to deduct input VAT, arguing that the lease duration invalidated the short-stay exception, the court found in favor of X BV.
- Interpretation of the Real Estate Decree: The Court clarified that the Real Estate Decree should be interpreted within the broader context, not in isolation, reinforcing that X BV could reasonably rely on the guidance provided in the decree regarding short-stay rentals, thus affirming the VAT-taxed nature of the rental and the entitlement to deduct input VAT.
Source Taxlive
