Objections villa fee not upheld

The RB and the SRA report that the Inland Revenue is unwilling to hold appeals against the “villa tax”. The (many) now filed (pro forma) objections are also not subject to the mass objection procedure.

Villa fee

The villa tax refers to the way the addition to income for the enjoyment of the owner-occupied home is determined. The basis for this is the WOZ value of the property. The addition is (in 2025):

The higher addition on the part of the WOZ value above €1,330,000 is the villa tax and its legality is being questioned, especially under European law. That question has now been submitted to the Tax Court. In late 2024, the North Holland District Court ruled in favour of the Tax Office (see our article Villataks).

Pro forma

The implication of the Inland Revenue's position is that it is not enough to file a pro forma objection in time, in order to secure rights, and then quietly wait for the Supreme Court to rule. Soon after filing the pro forma objection, the Tax Court will demand that it be supplemented with a statement of reasons. And upon receipt of that justification, after an (invitation for a) hearing, rejection of the objection will follow. The next step is then to lodge an appeal with the court and then go through the procedure there.

The Inland Revenue's position means that when considering filing an objection to the villa tax, it will have to factor in that further action will have to be taken within a short time thereafter, ultimately resulting in an appeal. This leads to significantly higher costs than merely filing pro forma objections. In far from all situations, there is such an interest that incurring such high costs is justified.

Whether the villa tax will eventually be dismissed by the tax court is highly uncertain. At least for the moment, the tax authorities are convinced they are right.