In December 2025 the Court of Appeal in ’s‑Hertogenbosch ruled that VAT can be deducted on construction costs of a workroom and garage rented to a company, provided the rental is a taxable economic activity. The ruling allows deduction only for the portion attributable to the taxable rental, even if the garage has limited private use. The decision is not final, as a cassation appeal has been filed with the Supreme Court, so businesses should seek VAT advice to ensure compliance.
It decided that VAT deduction is allowed for construction costs attributable to the taxable rental of the workroom and garage, even if the garage has limited private use.
The ruling was issued in December 2025.
Only the portion attributable to the taxable rental can be deducted; the private‑use portion is excluded.
No, a cassation appeal has been filed with the Supreme Court, so the decision is not yet final.
Consult a VAT advisor to document the taxable rental and separate private use, ensuring proper allocation of construction costs.
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