You are here:
24 June 2019 / news

No network exemption when acquiring transmitter masts

The Arnhem-Leeuwarden Court of Appeal ruled that the network exemption from real estate transfer tax does not apply to the acquisition of transmitter masts. The acquisition cannot be considered a network.

Update of the list of processing operations for which a DPIA is required

Issue of law and interest

The interested party is acquiring ownership of 170 transmitter masts. The interested party has not paid any real estate transfer tax with regard to this acquisition, because it believes that the ‘network exemption’ applies. The inspector disagrees with this, and has issued an additional assessment for real estate transfer tax.

Judgment

The parties do not dispute that the transmitter masts do not qualify as a network, but according to the interested party, the exemption nevertheless applies because the transmitter masts qualify as associated facilities forming part of the electronic communications network. The Court of Appeal concurred with the District Court in concluding that the network exemption does not apply to the acquisition of the transmitter masts. According to the Court of Appeal, the exemption requires there to be a network. This requirement has not been met. The Court of Appeal noted thereby that the network exemption does not apply to the acquisition of a part of a network that is not a network in its own right.

Contact

If you have any further questions on this issue or would like to receive more information, please contact Jérôme Germann, Jérôme Ariës or your trusted adviser at the Loyens & Loeff Real Estate Tax Team



Man in costume holding a white pen to sign a paper

Loyens & Loeff advised AXA Real Estate Investment Managers S.A.

Loyens & Loeff advised AXA on the acquisition of a logistics portfolio consisting of 65,300 sq m. read more

IT services related to VAT

IT services related to both VAT exempt and VAT taxed fund management are not VAT exempt. read more

EU Tax Alert - June 2020

The EU tax alert will inform you of recent developments in EU tax law. read more