Belgium: VAT guidance on “mixed-use” business assets, company cars

Belgium: VAT guidance on “mixed-use” business assets

New guidance concerns the rules on input value added tax (VAT) deductions related to business assets that are used for professional and private purposes—including company cars—and that historically have been the subject of various decisions and parliamentary questions. The guidance aims to coordinate existing measures, and to provide clarity and offer practical guidelines on such “mixed-use” business assets.

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Concerning company cars, the guidance provides a clear framework together with additional clarifications regarding the methods that apply for determining the business use of company cars. 

Another topic concerns the VAT treatment of a fuel card, as well as to the VAT treatment of “demo cars” that are used by employees as a private means of transport. The guidance provides certain tolerances for sales representatives and workers in the construction industry.

 

Read a December 2015 report prepared by the KPMG member firm in Belgium: Belgian VAT authorities clarify the rules on deduction of input VAT related to business assets (company cars, … ) used for mixed purposes

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