Service charges in accordance with the applicable VAT regulations.
From 1 January 2025, the distinction between residential and commercial premises for VAT on service charges will no longer apply. ista ensures that this change is implemented in a clear and transparent manner and that the service charges on residents’ bills are shown in accordance with the applicable VAT rules.
Since the legislative amendment, following the new VAT Property Decree, housing associations have been required to charge VAT on service and heating costs that can be individually controlled. This change affects the way in which costs and advance payments must be reported and how these are shown on the final statement.
To support organisations in setting up their systems correctly, we distinguish between three methods of VAT processing.
Below, we explain these three methods, including their impact on the statement.
1. Fully exclusive of VAT
With this method, both the costs and the advance payments are submitted exclusive of VAT.
VAT is not shown separately on the statement.
The amounts the customer sees are therefore always exclusive of VAT.
Suitable when the organisation processes the VAT itself within its own accounts.
Key features:
VAT does not appear on the final statement; all amounts are shown as exclusive.
2. Fully inclusive of VAT
With this method, both costs and advance payments are provided inclusive of VAT.
VAT is already included in the amounts provided.
Only inclusive amounts are shown on the final invoice.
VAT is therefore not added or itemised by Ista.
Key features:
The organisation provides all amounts gross (incl. VAT); the statement shows the same amounts.
3. VAT shown (advance payments incl. VAT, costs excl. VAT)
With the mixed method, the amounts are provided as follows:
- Advance payments including VAT
- Costs excluding VAT
ista then calculates and adds the VAT to the costs, so that:
- The VAT is clearly shown as a separate item on the final statement.
- The customer can see exactly which part of the costs relates to VAT.
Key features:
Transparent display: ista adds VAT to the costs and shows this separately on the bill.
The 3 methods summarised for comparison
| Method | Advanced payment | Costs | Btw‑vermelding op afrekening | Transparantie |
| Fully exclusive | Excl. VAT | Excl. VAT | None | Low |
| Fully inclusive | Incl. VAT | Incl. VAT | Not itemised | Low |
| VAT shown | Incl. VAT | Excl. VAT (ista adds VAT) | Yes, shown seperately | High |
As a customer, when should you choose which method?
- Fully exclusive: when the organisation wishes to retain control over its VAT administration and VAT does not need to be visible on a per-customer basis.
- Fully inclusive: when simplicity is the priority and VAT breakdown is not required.
- VAT visible: when maximum transparency is desired or when housing associations are required to disclose VAT in accordance with the Property Decree.
Do you have any questions about this?
Please feel free to contact our customer service department or contact your contact person at ista directly.