New buildings with independent apartments must be put into use separately and revised for VAT exemption when used in 2014. This ruling comes after a recent case involving stakeholder X, who constructed two new buildings with parking, retail space, and apartments above, all legally divided. The Court of Appeal in The Hague has ruled that X cannot calculate pro rata based on actual use and each apartment must be regarded as an independent immovable property. As a result, VAT for apartments put into use in 2014 must be revised due to a change in intended use. The appeal made to the Supreme Court was declared unfounded without further reasoning.
The decision made by the Court of Appeal in The Hague has significant implications for stakeholders involved in the construction of new buildings with independent apartments. In this particular case, stakeholder X had constructed two buildings, complete with parking, retail space, and apartments. These apartments were legally divided, with each unit having its own independent status.
However, the issue at hand was whether stakeholder X could calculate pro rata VAT based on the actual use of these apartments. The Court of Appeal ruled that this was not possible, and instead, each apartment must be treated as an independent immovable property for VAT purposes.
This means that any VAT exemptions or revisions that apply to these apartments must be done on an individual basis. In particular, apartments that were put into use in 2014 must be revised for VAT exemption due to a change in intended use.
The Supreme Court, to which an appeal was made, declared the appeal unfounded without providing any further reasoning. This decision by the highest court in the land solidifies the ruling made by the Court of Appeal in The Hague.
This ruling has significant implications for stakeholders in the construction industry, particularly those involved in the development of new buildings with independent apartments. It clarifies the approach that must be taken when calculating pro rata VAT and reinforces the need to treat each apartment as a separate and independent immovable property.
The decision also highlights the importance of properly documenting and categorizing the use of each apartment. Stakeholders must ensure that they accurately record the intended use of each unit, as any changes in use may result in the need for VAT revisions.
The ruling by the Court of Appeal in The Hague is expected to have a ripple effect throughout the construction industry. Stakeholders will need to carefully review their current practices and procedures to ensure compliance with this new interpretation of VAT regulations.
It is worth noting that the ruling made by the Court of Appeal in The Hague is specific to the case of stakeholder X and their construction of two buildings with independent apartments. However, it is likely that this ruling will be considered as precedent in future cases involving similar circumstances.
In conclusion, the recent ruling by the Court of Appeal in The Hague has clarified the approach that must be taken when calculating pro rata VAT for new buildings with independent apartments. Stakeholders must treat each apartment as an independent immovable property for VAT purposes, and any revisions or exemptions must be done on an individual basis. This ruling is expected to have a significant impact on the construction industry, and stakeholders will need to carefully review their practices to ensure compliance with these new regulations.
