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A housing cooperative has requested clarification on whether the final allocation of housing is exempt from VAT after being leased uninterruptedly to non-member third parties for more than two years. The DGT has ruled that if the tenants were different from the final allocatees and the period exceeded two years, the transaction is subject to VAT but exempt.
This ruling clarifies the VAT treatment for housing cooperatives when transitioning from rental periods to final property allocation, specifically regarding the two-year threshold for exemption.
The tax team reviews your specific situation.
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