Many landlords of commercial space are confronted with the VAT aspects of a purchased or rented commercial property. The VAT-taxed supply or the VAT-taxed rental of business premises is subject to rules.
Exceptions to the VAT rule
For example, the main rule is that the supply of business premises is exempt from VAT. There are two exceptions to this:
If new business premises are delivered within two years of being put into use for the first time , VAT will be due on this delivery . The seller must charge VAT on the purchase price. The purchaser can deduct all or part of the VAT, if VAT-taxable goods are supplied in the purchased goods.
Seller and buyer of business premises can opt for a delivery with VAT. This is only possible if the buyer can deduct the VAT for at least 90%. For some branches, a 70% deduction is sufficient. If the buyer does not take the property into use before the end of the next financial year, the 90% (or 70%) criterion will not be met.
What about the VAT on dance lessons? That question recently surfaced. Below is a brief explanation or refresh of knowledge. So are you wondering how to calculate sales tax? This explanation will help you.
You are responsible yourself
The applicable VAT legislation explicitly states when the exemption applies to VAT and whether the low rate or the general rate applies. You can read this on Belastingdienst.nl: here and here . Please note: applying the correctness and interpretation of the VAT rules and submitting a VAT return is your own responsibility.
VAT law states that dance lessons over the age of 21 are taxed at 21%. There is therefore no VAT obligation for dance lessons for students under the age of 21.
If dance lessons are aimed at competitions, then – when the set conditions are met – the low rate of 6% applies. It is then classified as sports. The dance school must demonstrate that the lessons are given to active competition dancers taking part in competitions. So it is up to the dance school to prove the extent of these lessons.
There is an online petition calling for a reduction of the VAT rate from 21% to 6%. According to the author of the petition, politicians do not seem to grant the request for a reduction, despite going to court. It is unclear how current the petition is.