News item | 27-02-2023 | 11:03
In the current legislation it is unintentionally possible to transfer new immovable property through a share transaction in such a way that neither VAT nor transfer tax is due. However, the starting point is that VAT is due on the delivery of new immovable property. Draft legislation has been drawn up to combat this structure, which is now being consulted. Implementation is foreseen on 1 January 2024, whereby the bill will be part of the 2024 tax plan package, depending on and subject to political decision-making, the results of the internet consultation and the implementation test. The proceeds of this measure are provisionally estimated at € 155 million.
This structure is interesting for buyers of new immovable property without the right to deduct VAT for whom that VAT is a cost item, for example for landlords of homes, educational institutions, pension funds, insurance companies and healthcare providers. The structure can be combated by changing the overlapping exemption in the transfer tax in such a way that the acquisition of new immovable property through shares is not exempt from transfer tax. This means that upon acquisition of a sufficient shareholding in a real estate legal entity (at least one third), transfer tax will be levied (10.4%).
Internet consultation
Before the draft legislation continues in the political decision-making process, the Ministry attaches great value to the input of those involved in this proposal. That is why an internet consultation will start from Monday, February 27, 2023 to Monday, March 27, 2023. You can express your opinion, advice or comments here. The internet consultation can be found here: www.internetconsultation.nl