- French tax authorities issued new VAT guidelines for company cars provided to employees
- Vehicles provided for a defined consideration are considered a taxable service
- Taxable service includes salary deductions or renouncing part of remuneration for the car
- VAT regime varies based on territoriality, tax base, and payment models
- If company and employees are in different EU Member States, service is taxable in employee’s country of residence
- Taxable basis includes all amounts received as consideration, such as salary deductions
- VAT on acquisition of company cars used by employees in exchange for consideration is deductible
- If no consideration is specified, transaction is not taxable unless VAT was recovered on vehicle’s acquisition
- Special rules apply for company shuttles used for employee transportation in challenging locations
- VAT on such vehicles is recoverable
- Companies should review company car policies to ensure compliance and optimize VAT recovery
Source: jdsupra.com
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.
