Insufficient rent and VAT deduction right

A rental does not constitute an economic activity when the property owner leases the premises for a non-significant or symbolic amount

It is also the case when the rental income is depending upon the payment capabilities of the renter, who is not able to assume a rent cost at market price

Therefore the property owner is not allowed VAT deduction right on expenses incurred on building subject to such lease

For any further information, do not hesitate to contact our teams at contact@rekoncil.com