Identify the investment service, not just the invoices
Major renovation or replacement of installations may benefit a property over several years. The nature and connection of the work and the applicable threshold matter; splitting it across invoices does not by itself determine the treatment.
Record first use and the initial VAT deduction
Keep the date the work was brought into use, the property’s purpose and the balance between taxable and exempt activities. Later changes in use can affect the earlier deduction. Adjustment of a service must not be confused with adjustment of the property itself.
Maintain a file for each property
Record the work, invoices, initial deduction and later changes such as a new tenant or altered activities. Make that information available when a property is sold or a group reorganised. Assign responsibility for updates so the annual VAT review uses a current file. Assess present use and realistic future plans before committing to renovation finance.
Source and background: Belastingdienst – BTW-aftrek investeringsdiensten.
