ARTICLE · 11 SEPTEMBER 1996
Changes To Dutch VAT And Transfer Tax Rules For Immovable Property
NetherlandsAccounting and Audit
This is contribution number 38 by KPMG Meijburg & Co regarding changes to Dutch VAT and transfer tax rules for immovable property.
INTRODUCTION
There have been major changes to the Dutch VAT rules and transfer tax rules for immovable property, principally to combat tax avoidance.
The legislation was published on 29 December 1995, but has retrospective effect from 6.00 p.m. on 31 March 1995.
CHANGES DUTCH VAT RULES FOR IMMOVABLE PROPERTY
The principal changes are:
1) A lessor can only opt tax (i.e. to charge VAT) on a lease if the lessee is entitled to recover at least 90 % of the VAT charged.
If the lessor does not opt to tax the lease, it will be exempt and the VAT charged on, for example, maintaining or converting the relevant property cannot be deducted by the lessor.
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