ViDA is coming: the biggest VAT reform in decades. Is your organisation ready for e-invoicing? Read more
Real estate
The VAT and real estate transfer tax rules governing property transactions are among the most complex in tax law. VAT INSTITUTE is the specialist for project and area developers, institutional and private investors, housing associations and property managers who require certainty about the tax consequences of their portfolio.
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Expert advice on the VAT consequences of acquisition and disposal, new construction, transformation, renovation, sustainability improvements and letting of property, including the interaction with real estate transfer tax.
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VAT analysis of (potential) acquisitions, restructurings and the transfer of land, property portfolios or shares in property companies. We map out the tax risks and opportunities.
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Calculation of the VAT deduction, adjustment in case of a change in operation or a change in own use, the deduction possibilities for sustainability improvements and full compliance for complex property structures.
The VAT treatment of real estate is one of the most complex subfields within VAT. Whether a transaction is taxed or exempt depends on a multitude of factors: the type of property, how long the building has been in use, what it has been or will be used for, the parties involved and the chosen structure. The consequences of an incorrect qualification are considerable, particularly because real estate typically involves substantial amounts.
VAT INSTITUTE has many years of expertise in every facet of real estate VAT. We advise on the VAT consequences of new construction and conversion, sustainability improvements, the choice between taxed and exempt letting, the application of the adjustment rules and the transfer of portfolios or individual properties.
Our expertise covers the full life cycle of property. For a new construction project, we advise on the VAT consequences of the land acquisition and the possible concurrence exemption from real estate transfer tax, and we manage the developer’s VAT position through to the sale.
For letting, we advise investors on the acquisition, the options for taxed or exempt letting and their consequences for the input VAT deduction. On a sale, we clarify the consequences for VAT and real estate transfer tax, and the impact on the input VAT already deducted (adjustment).
The VAT rules for real estate demand specific knowledge of legislation and regulations, policy and European and Dutch case law. Knowledge of real estate transfer tax is indispensable as well. Our advisers are at home in this domain and follow every relevant development closely.
We prefer to be involved from an early stage. The sooner we look in, the more room there is to optimise the VAT and real estate transfer tax position and to prevent risks. From the first feasibility study to completion or operation: we think along at every stage.
Property transactions are teamwork. Where desired, we work closely with your civil-law notary, accountant, tax adviser and other partners, so that the transaction meets all VAT requirements.
Knowledge base
Current developments and in-depth analyses in the field of VAT for property development, investment and management.
In the Nova Ibermoldes case, the Court of Justice of the EU ruled that Portugal may not levy transfer tax on a restructuring in which a public limited company is incorporated and its shares are paid up by contributing shares in a property company. The ruling may also affect the restructuring of Dutch groups holding property companies.
Read moreThe draft bill introducing the deemed supplier rule for short-term rental and passenger transport by road has gone out for public consultation. We responded on three points that affect practice.
Read moreThe Court of Appeal in 's-Hertogenbosch ruled on the letting of a home office to the occupant's own company. The Dutch Tax Administration refused the deduction because the room was not used exclusively for business, and the court agreed.
Read moreFAQ
Is your question not listed? Feel free to contact us, we aim to respond within one business day.
The supply of a new building or building land is subject to VAT. A building is considered new until two years after it was first taken into use. After that period the supply is VAT-exempt, unless the parties jointly opt for a taxed supply. The precise qualification depends on several factors, which we assess case by case.
Schedule a meeting with one of our specialists and get clarity on your VAT matters. We will help you find the best approach for your specific situation.
