Supreme Court to Decide Tax Status of Paved Parking Lot: Built or Unbuilt Land?

• The Dutch Supreme Court is considering whether a paved parking lot is classified as built or unbuilt land for VAT purposes.
• The parking lot is intended for development into six new homes and has been divided into six plots.
• If classified as built land, the sale of plots is VAT-exempt but subject to transfer tax.
• If not considered a building, the sale is subject to 21 percent VAT but exempt from transfer tax.
• The court’s decision impacts the tax advantage for buyers, depending on their VAT deduction rights.
• The Gelderland Court ruled the parking lot as built land due to the fixed paving.
• The Arnhem-Leeuwarden Court disagreed, considering it unbuilt land, except for one plot with specific features.
• The Attorney General advised the Supreme Court to uphold the decision that the plots are not built land.
• The expectation is that the Supreme Court will follow this advice.

Source: btwinstituut.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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