VAT on immovable rent
How will the option to subject immovable rent to VAT impact businesses? Which is the best approach to a company's needs?
The Belgian government has decided to introduce the option to subject immovable rent to VAT (Optionele btw-heffing op onroerende verhuur | Taxation de la location immobilière à la TVA) for projects as of 1 October 2018, adding a valuable alternative to exploit real estate in Belgium. The objective of the new regime is to provide companies flexibility in how they exploit their real estate, allowing landlords to deduct VAT on their investments.
Danny Stas, Nancy Muyshondt and Joaquim Heirman from Deloitte Legal's VAT team of lawyers, collaborated with Ivan Massin, Indirect tax Senior Director in Deloitte Belgium, to look into the new rules and set out how the different real estate sectors will be affected by the new rules.