VAT Deduction on Company Vehicles: Parliamentary Question by Deputy Thierry Liger

Deputy Thierry Liger questioned the government about VAT deduction rules for company vehicles following a rescript published on 30 April 2025
The rescript confirmed that providing vehicles to employees is subject to VAT when compensation is paid by the employee through payroll deductions or other means
Companies must now collect VAT on employee compensation but can deduct VAT on vehicle related expenses including acquisition or rental costs
The main issue concerns whether benefits in kind valued as gross remuneration using URSSAF methods constitute compensation for VAT purposes
Liger argues that including vehicle benefits in gross salary represents real consideration since employees effectively finance vehicle use through their total agreed remuneration

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