• Service: Tax, Global Indirect Tax, International Tax
  • Type: Regulatory update
  • Date: 1/6/2014

Netherlands - VAT adjustment for private use of company cars 

January 3: A “taxable person”—for value added tax (VAT) purposes—with company cars that are also used by employees for private purposes will need to make a VAT adjustment (generally, an adjustment of 2.7% of the catalog price of the car).

Certain businesses have filed objections against this adjustment method concerning earlier years.

The Dutch tax authorities have stated that if an objection was filed against the assessed amount of the VAT adjustment for the private use of a company car for 2011 or 2012, no objection will need to be filed for 2013. Rather, the Dutch tax authorities have stated on their website that the VAT adjustment for 2013 will be dealt with as an “ex officio” VAT adjustment.

KPMG observation

If the Dutch tax authorities do deal with the VAT adjustment for 2013 on an ex officio basis, it will not be possible to file a notice of objection or an appeal against this ex officio assessment. Accordingly, it may be prudent to file a regular notice of objection against the assessed amount of the VAT adjustment for the private use of the company car for 2013 in certain situations.

Read a January 2014 report prepared by the KPMG member firm in the Netherlands: VAT adjustment private use of company car for 2013

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