The warehouse rental with mandatory submission to VAT with the 90% rule was changed to a 50% rule with effect from 2019.
With the introduction of the new legislation on the leasing of commercial real estate with VAT, the leasing of warehouses mandatory submission to VAT has also been adjusted as of 2019.
The rule of minimum 90% use as storage was adjusted to at least 50% storage. The remaining space may be used for other activities such as production, processing or sales with the restriction that no more than 10% of the entire space may be used as sales space.
The arrangement is optional: both the lessor and the lessee must opt for this arrangement. Only in a B2C context is the renting of storage space subject to VAT.
Finally, the scheme applies to both old and new buildings. This regulation as from 01/01/2019, contrary to the regular business lease with VAT, is therefore not only applicable to new buildings.
For existing contracts, a transitional arrangement has also been provided whereby existing rental contracts for storage areas that
1) were already subject to VAT before 01/01/2019, are obliged to remain subject to VAT until the end date of the contract for which an option can be exercised.
2) meet the new conditions, but which were previously not let with VAT (because of the 90% rule), can be subject to VAT provided that an addendum is concluded in which the storage is let with VAT for the remaining duration of the contract. If necessary, part of the VAT can still be recovered if the revision period of 15 years has not yet expired.