In the new VAT deduction ceiling - which entered into force on 1 January 2013 - the link with the Benefit In Kind in the income tax declaration is definitively ended and the business use of vehicles must be taken into consideration. The new regime applies to purchased vehicles and to lease or rental cars and offers 3 methods for calculating business use.
Depending on the business use, the taxpayer may henceforth deduct a maximum of 50% of the VAT for private cars and 100% for vans.
In determining the VAT deduction, a distinction must also be made between cars that are made available free of charge and cars for which the employee pays a personal contribution.
All details about the new regulation can be found in this overview.
Click on the links below for some clear quantitative examples:
- Calculation example of passenger car without employee contribution
- Calculation example of passenger car with employee contribution
- Calculation example of Light Commercial Vehicle without employee contribution