Amsterdam court agrees with landlord: less rental discount for hotel

Entrepreneurs affected by corona can receive less rental discount than previously determined due to a decision of the Amsterdam Court of Appeal. This ruling could have a negative effect on hotels and retailers, among other things.

earlier the Amsterdam court ruled that a company’s decline in turnover determines how much discount should be given on the rent of business premises. Government support in the form of the Fixed Charges Allowance (TVL) must be added to the turnover. But the Amsterdam Court of Appeal ruled today that that decision was incorrect.

The TVL is a scheme to financially compensate companies with loss of turnover due to corona. According to the judge, entrepreneurs must also use this allowance to cover their fixed costs such as rent and energy. In the calculation of the rental discount, this means that the TVL may no longer be added to the turnover, but that it is seen as an allowance for fixed costs.

As a result, tenants are only entitled to a discount on the rent that remains after using the TVL. The rental discount may be lower, because the reduction is no longer calculated on the turnover including TVL.

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