Tax Classification of Parking Lot Parcels with Paving: A-G’s Conclusion on VAT Status

• Six plots with paving were created from a split parcel with a parking lot.
• X BV bought the parcel in 2018, which included a parking lot with paving, a lamppost, curbs, and drainage.
• The parcel was split into plots 6 to 11, sold in 2020 to private buyers.
• The Tax Authority classified all plots as undeveloped land, subject to VAT.
• Gelderland Court ruled the plots were developed land due to the paving being hard to remove.
• Arnhem-Leeuwarden Court disagreed, assessing plots individually.
• The court found the paving was not fixed to the ground, classifying plots 6, 7, 9, 10, and 11 as undeveloped.
• Plot 8 was exempt from VAT due to a lamppost and drainage, considered a building.
• X BV filed four complaints in cassation.
• The first complaint argued the court misapplied the Maierhofer standard.
• The A-G concluded the court’s decision was well-reasoned and aligned with the Maierhofer standard.
• The second complaint involved the incorrect application of the Real Estate Decree 2023 instead of 2013.

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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