• Service: Tax, Global Indirect Tax, International Executive Services, Global Compliance Management Services, International Tax
  • Type: Regulatory update
  • Date: 9/17/2013

Belgium - VAT deductions for company cars, light trucks 

September 17: The deduction of value added tax (VAT) with respect to company cars is limited to actual business use.

The Belgian VAT authorities in December 2012 provided three methods that companies can use to determine the business use of their company cars:

  • Keeping a log book
  • Using a “semi-lump sum” based on the home-to-work distance
  • Using a general lump sum of 35%

Light trucks

Additional guidance (September 2013) clarifies some of these concepts and also provides a new method (a fourth method) for “fiscal light trucks.”

In determining the input VAT deduction for fiscal light trucks used both for business and personal purposes, VAT taxpayers may opt either for the first method (keep a log book) or for a new fourth method—i.e., a general lump sum business use determined at 85%.

The 85% lump sum factor can only be applied when the light trucks are mainly used for to the transport of goods in the context of the economic activity. Otherwise, a lump sum of 35% can be applied.

Read a September 2013 report prepared by the KPMG member firm in Belgium: New rules on deduction of VAT on company cars published

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