As a VAT entrepreneur, you can deduct the VAT on costs if you purchase goods and services and use them for your VAT-taxed services. As a starting point, VAT must be applied to expenditure of a consumer nature (private character). In this context, Dutch VAT legislation has a correction of VAT deductions based on the Decree on Exclusion of Deductions (hereafter: “BUA”). At the end of each year, you must calculate the VAT adjustment for private use and include it in the last VAT return of that year.
Source Deloitte
