WHAT HAS CHANGED?
In 2025, the ROZ (Dutch Real Estate Council) updated its standard lease model. The biggest change is in the VAT clause. Where landlords previously charged VAT on rent by default, using a mandatory “option for taxed letting” that is no longer automatic. The amendment makes it easier to agree on VAT-exempt letting. That delivers immediate financial benefits for tenants who cannot deduct VAT.
WHY THIS MATTERS FOR NON-VAT-LIABLE TENANTS
For tenants who cannot reclaim VAT, VAT on rent is a direct cost. On an annual rent of €300,000, that quickly means €63,000 in non-deductible VAT. Thanks to the new model, tenants and landlords can now more easily agree to VAT-exempt letting. This saves money right away and makes total accommodation costs more manageable.
NOTE: THIS WON’T HAPPEN BY ITSELF
Although the model has been amended, existing leases do not change automatically. In fact, many landlords prefer taxed letting because it allows them to reclaim VAT on investments and maintenance, such as refurbishments to the building. Tenants therefore need to take the initiative to revise the terms—e.g., at a renewal, an expansion, or any renegotiation.
SUPPLIES AND SERVICES PROVIDED BY THE LANDLORD
Landlords must assess in each case whether utilities (such as gas, water, and electricity) and service charges (such as cleaning, concierge, and maintenance of installations) qualify as a separate supply or as an ancillary supply. This assessment depends on factors such as the presence of individual meters, settlement based on actual consumption, the tenant’s ability to choose their own supplier (for example for cleaning or maintenance), and whether costs are invoiced separately. The ROZ model offers practical guidance to support landlords here. If supplies are separate, they are subject to VAT. If they qualify as ancillary, they follow the VAT regime of the letting under the ROZ model. In the latter case, non-VAT-liable tenants do not pay 21% VAT, but only about 5–6%.
STRATEGIC TIMING: WHEN SHOULD YOU SEIZE THIS OPPORTUNITY?
The best opening for renegotiation is a natural checkpoint: the end of the lease term, a refurbishment of the premises, or a (partial) reconfiguration. That is precisely when many contractual provisions are revisited and the door opens to a VAT-exempt agreement.
Another good trigger is a planned office renovation or building upgrade. When new investments are being made, landlords want certainty about the VAT position. A well-substantiated negotiation can then lead to terms that benefit both parties.
WHAT SHOULD YOU WATCH OUT FOR?
- Record the correct VAT status
Have it explicitly stated that the letting is VAT-exempt and that this is a deliberate choice. - Substantiate your position
Calculate the impact of VAT on your total accommodation costs and weigh this against the benefits for the landlord. - Engage an independent advisor
The tax and legal nuances are complex. Independent guidance helps you avoid missed opportunities or unnecessary risks.
SMART CHOICES, LASTING IMPACT
In a time when every euro counts, this relatively small change in the ROZ model can make a substantial difference for non-VAT-liable tenants. By acting proactively, negotiating smartly, and timing it right, you can move toward lower costs and greater financial flexibility.
Curious what this change means for your organization in concrete terms? We’re happy to analyze your lease and draft a plan of approach for renegotiation.
Get in touch for a no-obligation conversation with one of our advisors.