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Company car and final Value Added Tax return for 2014

When you are the entrepreneur driving the company car, then a percentage of the value of the company car is added to your income. Via this method the advantage of the use of a company car is taxed. Are you aware that besides this an amount of VAT is due?

2,7% VAT over the cataloque value including VAT and BPM

The VAT amount due for the use of the company car is 2,7% over the fiscal value of the car. This amount needs to be reported in the final VAT return of the year. That is either December, fourth quarter or the annual VAT return, that depends on how often you are required to file the VAT return.

The amount of VAT due to the tax office is to eliminate the private use part also out of the VAT claim.

No VAT added to the income in case of no private use

Only if you indicated to the tax office that you do not use the company car for private purpose, or for less then 500 km per year, then this amount of VAT is no due.

Should you have driven a company car for a couple of years and you never reported then we suggest to voluntarily make the adjustments over the years. This is better than the tax office making them for you during an audit, because then a 25% or 50% penalty is added to the amount. If the tax office has the impression you deliberately have not reported the VAT amount, the penalty is 100% over the VAT amount due.

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