Global

Details

  • Service: Tax, Global Indirect Tax, International Executive Services, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 7/23/2012

The Netherlands - VAT on private use of company car 

July 23:   The value added tax (VAT) rules with respect to the private use of a company car have been updated, and now allow for certain adjustments.

As of 1 July 2011, the VAT calculation for the private use of a company car was determined with a fixed rate of 2.7% of the car’s “catalogue price.”


Under a new decree, certain clarifications and additional concessions are allowed with respect to determining the VAT liability for private use of a company car. For example, a reduced fixed VAT rate of 1.5% may be applied after the car has been used by the business for five years (including the year of its first use).


Read a July 2012 report prepared by the KPMG member firm in the Netherlands: VAT: Decree on taxation of private use of company car updated; expanded possibility to apply reduced fixed amount




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