Change in VAT for own contribution to employee benefits or gifts in the Netherlands

• The Dutch Tax Authority has announced a change in the VAT rules regarding employee benefits or gifts.
• Currently, businesses can deduct the employee’s contribution (excluding VAT) from their expenses until January 1, 2024.
• If the expenses fall below the BUA threshold of €227 (excluding VAT), the VAT can be deducted.
• However, starting from January 1, 2024, businesses will no longer be able to deduct the employee’s contribution from their expenses when calculating the BUA threshold.
• The total expenses will need to be compared to the threshold as determined by the VAT Act.

Source: fiscaalvanmorgen.nl

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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