When it comes to VAT
Budget Day 2024 | Tax plan 2025
The following topics are discussed in this newsletter:
- Reduction of the rate for investors in homes
- No economic ownership with key statement ("sleutelverklaring")
- Adjustment of the exemption for division
- Adjustment of the exemption for land consolidation
- Acquisition of shares in certain companies
Reduction of the rate for investors in homes
A proposal is being made via an amendment to reduce the rate (currently 10.4%) to 8%, as of 1 January 2026. This rate will apply to the acquisition of homes, with the exception of situations in which the existing reduced rate of 2% or an exemption applies. The proposal therefore mainly concerns investors in homes. As soon as the amendment has been published and the details are known, we will report on this.
This change can be called special, since the rate increase from 8% to 10.4% was only introduced in 2023.
The proposal does not lead to the withdrawal of the 10.4% rate,
The time when there was simply one rate (6%) that applied is far behind us. The rate differentiation seems to have gone too far. We refer to an earlier news item about this.
No economic ownership with key statement ("sleutelverklaring")
In the bill Fiscal Collection Act 2025, the proposal was made to no longer qualify a "sleutelverklaring" for homes as the acquisition of economic ownership. This change must come into effect on 1 January 2025.
Adjustment of the exemption for division
Earlier this year it was made clear that the exemption for division will be adjusted to prevent unwanted use of this exemption. Based on this change, the requirements for applying this exemption will be tightened. The bill for this change has yet to be published. From previous publications we gather that the wish is to introduce the proposal as of 1 January 2025.
Adjustment of the exemption for land consolidation
Based on the 2025 tax plan, the exemption for land consolidation will be adjusted. The adjustment should lead to the prevention of unintended application of this exemption.
Acquisition of shares in certain companies
In an earlier message, we already reported on the introduction of the 4% rate for certain real estate share transactions as of 1 January 2025. These types of transactions can, under certain conditions, share in a concurrence exemption. Since no VAT is due for these transactions either, it was necessary to apply a 'correction'. The correction is carried out via the transfer tax. With this message, we would like to remind you that this change will come into effect as of 1 January 2025.
If you have any questions about this topic or if you would like to discuss the topic further, please do not hesitate to contact us at info@vatpartners.com
10-10-2024 - Right to deduct VAT on the purchase of goods, even if the goods in question are made available to a service provider free of charge.
Read more25-09-2024 - In September 2024, the Court of Justice (ECJ) made an important ruling in the Drebers case in the area of real estate, VAT deduction and adjustment of that deduction if it concerns services (such as renovation services). We will tell you more about this in this news item.
Read more17-09-2024 - Budget Day 2024 - In this news item we provide a summary of the (proposed) legislative changes regarding VAT
Read more11-09-2024 - In 2025, the margin scheme will be changed, meaning that entrepreneurs will no longer be able to apply the scheme if the goods were purchased with the reduced VAT rate. As a result, when these goods are sold, the full compensation falls under the (usually) 21% rate.
Read more
