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Taxation Details and Solutions for the Right Presentations

This ‘concurrence decision’ is of great value to real estate practice. After all, in most cases levying transfer tax means an important cost item that buyers of real estate prefer to avoid. Below is a brief description of some situations for which the current decree contains an allowance scheme.

The New Details

The new concurrence decision also clearly approves the application of the “concurrence exemption” in situations in which a VAT-taxed supply / economic supply takes place first and only then is a legal supply. This approval is very important for practice because no more discussions with the inspector are required.

  • However, conditions are attached to this approval. In particular, the requirement that the immovable property must qualify as “new immovable property” or as “building land” for VAT purposes at the time of subsequent legal acquisition of ownership can sometimes be disadvantageous. If an investor / developer buys land from the municipality and receives it economically, but only legally receives it (much) later after it has been put into use more than two years after economic delivery, transfer tax must still be paid.

Best Decisions

The decision also contains an unqualified arrangement for the legal acquisition in the context of a so-called “ABC delivery”. In this case, economic supplies (for VAT) are made by “A” to “B” and then by “B” to “C”, while the legal ownership is transferred (directly) by “A” to “C”. Because “C” acquires the economic or legal ownership of different parties, the “concurrence exemption” does not in principle apply. The concurrence decision now gives approval for this. The municipality (A) receives money from the project developer (B) in an installment. That could be a reason for transfer tax. The project developer then receives the land term from the buyer (C), while the municipality legally delivers the land directly to the buyer. Make use of the in this case now.

Latest Decisions

The new concurrence decision ensures that there is no transfer tax. If a municipality actually makes a building site available to a buyer prior to the formal establishment of a leasehold, stricter conditions also apply to the application of the concurrence exemption. Among other things, the actual making available of the building site for VAT purposes must (nevertheless) be treated as a transfer of so-called economic property for which VAT is due. The formal establishment of the leasehold must then take place before the new building is put into use for the first time.

  • Particularly for a buyer who performs exempt services, as with many social real estate (and therefore does not have a full right to deduct input tax), this can lead to a financial disadvantage because the VAT must be paid earlier.


The concurrence decision has now been ‘in office’ for several months. The decision has generally been received quite positively since it became known. To date no special bottlenecks have emerged. As a training institute, Scobe would like to familiarize its students with the current content of this concurrence decision and the opportunities that this decision offers for real estate practice. This is all the more reason to (also) make time for this topic after the holiday period.