Share Sales in Real Estate Portfolio Not Considered Ancillary for VAT Deduction Purposes, Tax Board Rules

The case concerned a denied request for VAT and payroll tax refund for 2017 related to the sale of capital shares.
The main issue was whether the sale of capital shares was part of the company’s economic activity and if it should be considered an ancillary transaction under the VAT Act.
The company regularly bought and sold real estate and capital shares as part of its investment strategy.
The Tax Appeals Board found that the sale of capital shares was an integrated part of the company’s business, not an ancillary transaction.
As a result, the revenue from these sales must be included in the calculation of the deduction percentage, and the tax authority’s decision was upheld.

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.