VAT on Employee Vehicle Provision: Tax Administration Clarifies Applicable Regime and Implications

• The tax administration clarified the VAT regime for companies providing vehicles to employees for mixed professional and private use.
• Vehicle provision is considered a taxable rental service if there is compensation, regardless of its form.
• No VAT applies if the vehicle is provided free of charge without any compensation from the employee.
• The taxable base includes all compensation received, allowing companies to deduct VAT on related expenses.
• Collective transport vehicles like shuttles are not subject to VAT if no compensation is required from employees.
• Exceptions allow VAT recovery if the vehicle use is necessary for economic activity organization.
• Companies must distinguish between compensated and non-compensated vehicle provision.
• They should verify VAT deduction eligibility based on vehicle type and assess the financial impact of VAT imposition.
• Proper classification of shuttle services is necessary to avoid tax issues.

Source: ayming.fr

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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