- If you have used business goods for private purposes, such as a company car, you must make VAT corrections in your last tax return of the year.
- This applies to private use of a company car, including commuting, and other private uses like canteen services, business gifts, staff outings, housing, and Christmas hampers.
- There are exceptions for certain facilities, such as provision of a bicycle.
- If the value of benefits provided to staff or relations exceeds €227 per person (excluding VAT), a correction must be declared. However, special circumstances, such as providing staff benefits to motivate them and increase productivity, may exempt the need for correction.
- Changes to the treatment of personal contributions for services subject to VAT will take effect from January 1, 2024, impacting the assessment of threshold amounts.
- The BUA correction made in the last tax return of 2023 will not be affected by this change and will only apply from 2024.
Source BDO
