VATupdate

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Private use of car by foreign employee: in which country do you pay VAT?

In the Netherlands, you as an entrepreneur may fully deduct VAT on costs related to a company car. Later, a correction will be made for private use, in which case you must pay VAT on the costs related to private use.  If you have a foreign employee, you may also have VAT obligations in the other country. A recent conclusion by Advocate General Szpunar prompts us to reflect on this.

Source: BDO NL

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