Changes to the building construction required for 'essentially new construction' for VAT purposes

11 November 2022 - On 4 November 2022, the Supreme Court answered preliminary questions from the district court of Zeeland-West Brabant on the interpretation of the concept of 'essentially new construction' for VAT purposes. 'Essentially new construction' occurs when an essentially new building is created after renovation work on an existing building. The delivery of the transformed building is then subject to 21% VAT and the concurrence exemption for transfer tax can be applied to the acquisition.