The supply of almost all products and services provided by entrepreneurs is subject to turnover tax, also known as VAT (value-added tax). This also applies to services provided by a notary.
The rental and delivery of real estate is in principle exempt from VAT. This seems nice but is not always the case. Indeed, when an immovable property is used for non-VAT-taxed services, the VAT deducted in the past must in many cases be repaid. If an entrepreneur supplies to another entrepreneur, in many cases this can be resolved by opting for a VAT-taxed supply or rental.
In a number of cases, VAT is owed by operation of law. This is the case if:
- a property is delivered within two years of first occupation;
- a building plot is delivered.
The nice thing is that when a building plot is delivered or is delivered before first occupation, no transfer tax is due in those situations.
When delivery is made to a private individual, it is usually more pleasant if no sales tax is due. When supplying to an entrepreneur, it is usually the other way round.
For more information on the concurrence of transfer tax and turnover tax, please contact us. We will be happy to advise you.
pkooijman@kooijmanautar.nl
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