After having recently ruled over the qualification of leasing agreements with call option as a supply of goods or services [1], the ECJ has now investigated the VAT treatment of hire purchase transactions and, more precisely, the right to deduct the input VAT on costs incurred by the lessor. […]
VAT
Real estate development based on a long leasehold and marketing costs: what about the VAT?
When it comes to real estate development, it happens frequently that the developer erects the constructions based on a mere long leasehold with deferral of the ownership transfer. As a consequence, prospective buyers are being offered to contract with two distinct sellers: the developer with respect to the constructions (either […]
VAT: shall a lease agreement with call option be qualified as a supply of good or service?
The European Court of Justice has delivered, on the 4th October 2017, important clarifications regarding the characterisation as a “supply of service” or “supply of good” under the VAT legislation of a lease contract with a call option*. Relevant issue, if any, as the lease is subject to tax, in […]
Array of discussions regarding the new option for the application of the VAT to immovable leases for businesses
For the full version, click here / Belgium was still lagged behind other Member States while not allowing taxpayers to opt for the application of the VAT to immovable leases granted to tenants able to recover it. This should become a thing of the past as from 1st January 2018. On top […]
Spit sale of the building and the land for VAT
2016/10 – E.-G. Lang, Vente des constructions et du sol attenant par des personnes distinctes: une première décision du SDA, Point de plume, Octobre 2016