Per 2026, the Netherlands introduces VAT revision on real estate services.

Currently, VAT revision periods have only been triggered by (re)construction activities that result in the creation of "newly built real estate." This revision period typically spans ten years from the date the immovable property is first put into use. The concept of “revision” entails that if the use of the property changes during this period, such as a shift from VAT-taxed to VAT-exempt rental, the initially deducted input VAT must be proportionally adjusted.

Following the year of first use, this adjustment generally involves a correction (10% per year for a 10-year revision period, 20% for a 5-year revision period) for each remaining year of the revision period.

Effective 1 January 2026, substantial investments in existing buildings may also initiate a new VAT revision period. This new period will span five years and applies specifically to so-called “immovable investment services” with a value of at least EUR30,000 (excluding VAT).

Note the rules also apply to services already rendered if the respective (part of) the property has not been used since the services were rendered and before 1 January 2026.

This means any property can be subject to (many) revision periods, increasing the administrative- and compliance burden. 

Key takeaway / recommendation

Given the relatively low threshold, even moderate renovation works may trigger this rule. As a result, VAT recovery must be carefully monitored and may require adjustment if the property's use changes during the revision period.