Sale-and-lease-back Transaction Has Far-reaching VAT Implications

Sale-and-lease-back transactions have taken off in the Dutch logistics real estate sector (especially distribution centres). The enormous increase in online sales has led to a greater need for distribution centres. There also seems to be growing interest from the UK. Adapting to the post-Brexit reality, British companies are looking to lease distribution centres and other logistics properties in the Netherlands.

A sale-and-lease-back transaction tends to occur if a company has developed a logistics location for itself entirely in accordance with its own needs and wishes. The newly realised distribution centre is then sold and leased back to itself. A triple-net long-term lease is the form often chosen, giving the lessee a high degree of independence. The sale-and-lease-back transaction frees up capital locked up in bricks and mortar.