The Netherlands’ Ministry of Finance released an updated draft bill for public consultation, on 6 September 2024, regarding changes to the value-added tax (VAT) on services related to immovable property. This includes properties such as buildings whose renovations, repairs, and other major maintenance expenditures exceed EUR 30,000.
Under current VAT rules, VAT recovery for immovable property services is generally finalised at the end of the financial year when the services were first utilised. This draft introduces several changes by including a new version of the VAT adjustment scheme and explanatory notes from the previous consultation last spring this year. Further clarifications are expected on Budget Day as part of the 2025 Tax Plan.
The proposed new regulations are set to take effect on 1 January 2026.
