- The use of company cars by businesses, especially regarding private use by shareholders or partners, often leads to disputes between tax advisors and tax authorities. For VAT purposes, a car can be assigned to business assets if at least 10% is used for business, allowing full input tax deduction. In corporations like GmbHs, providing a car to shareholder-managers for private use is considered a barter transaction (car use in exchange for management services) and is generally subject to VAT, as it is not classified as a gratuitous value transfer.
Source: datenbank.nwb.de
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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