However, if your business is not subject to VAT or if you make VAT-exempt deliveries, any VAT levied on rent increases your costs. 1. In Ireland, tenancy contracts subject to the general provisions of the Belgian Civil Code generally fall into one of two categories: short-term tenancy contracts of less than five years or full repair and insurance contracts, usually granted to professional tenants for periods of up to 20 years, although durations between 10 and 15 years become more frequent. German law distinguishes between rental and/or accommodation leases (rental contract). Commercial or residential property rentals are more common than rentals. While the rental of commercial and/or residential buildings gives the tenant the right to use the leased property, the beneficiary of a lease has the right to use and benefit from the leased area. B for example in the case of an operating lease comprising all agricultural machinery and the right to harvest, etc. The supplier`s VAT on residential real estate income is not payable, whether the owner/broker/broker/developer/speculator is a VAT seller! This applies only to rental income (not sales) and does not cover the rental of commercial housing (hotels or pensions), commercial or agricultural rentals. As with leases, renting a unit allows an individual tenant to use the property for an agreed period of time in exchange for compensation. However, this plan is governed by a regime other than professional leasing. The question of whether VAT on rents will be charged to you depends on the property concerned. Where the landlord has “opted” for tax for VAT purposes, the rents are subject to VAT; Otherwise, rents are exempt from VAT. In the two cases pending before the Luxembourg court, the lenders had opted for the application of VAT on the lease (taking into account the use of the building for taxable activities) and the VAT options were accepted by the TAXE authorities.
However, the leases provided for a rent-free period of more than 6 months, which led to the regularisation of the UPstream TAXE deducted by the VAT authorities for this period and, therefore, to the opening of legal proceedings. As far as business rentals are concerned, there are additional rules that are set by the local authorities.