- Firms cannot deduct 100% VAT if employees park company cars in their own garage or in front of their house, according to the tax authorities.
- The latest interpretation from the Director of the National Tax Information confirms this.
- The argument that some industries require early departures or late returns when the company parking is closed or too far from the employee’s residence does not convince the tax authorities.
- Courts have stated that agreeing with the tax authorities would render the provision for 100% VAT deduction for the purchase and operation of company cars impossible to apply.
- There is always the potential for mixed use (business-private) of cars.
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.