If the proposal is implemented, the review period will also apply to (investment) services, the proposal refers to services which are written off by businesses based on the income of corporate tax rules, such as intellectual property services or IT services (software). These services are used for a longer period and normally also activated and written off, so they have the same features as investment goods.
This rule will have severe implications for the real estate sector and businesses that do not have a right to deduct 100% input VAT (partial deduction). The VAT deduction on qualifying services will now also not be final after one booking year, but the usage of the services will need to be followed in order to judge whether the reclaim needs to be corrected.
The proposal has an aimed start date of the 1st of January 2018. An internet consultation is opened, businesses can respond to the proposal through the online questionnaire before the 15th of June 2017.