Tax often plays an important role when it comes to climate change and climate-related projects and activities.On the one hand, there are specific Dutch taxes relating to climate change (e.g. CO2 levy, waste tax, coal tax and energy taxes). The Dutch government, as stated in the Climate Agreement, actively uses taxation as an instrument to reward sustainable behaviour and discourage unsustainable behaviour.
On the other hand, climate change-related activities often have other specific Dutch direct tax considerations (e.g. tax deductibility of funding costs, depreciation). Also, VAT and real estate transfer tax often play an important role in sustainability and circularity.
Circular revenue modelsWe have been involved in various real estate projects where circular revenue models were key. Within these revenue models, new performance models and maintenance agreements are being tested. Such contractual shifts have an impact on owners, suppliers and users as there are shifts in ownership, risk/financing and use. For example, purchase is, from a VAT perspective, generally taxed differently or at a different point in time than rent/lease. But a VAT burden may also be borne by other parties because of an amended fact pattern. In addition, in the case of legal separation of ownership through ground lease or a right of superficies, VAT and real estate transfer tax aspects need to be considered.
The Houthoff Tax Team will happily discuss these Dutch tax considerations with you in more detail.