BMF Clarifies VAT Rules for Employee Use of Company Cars Following 2022 BFH Ruling

• The BMF addresses a 2022 BFH ruling on VAT for company cars provided to employees for private use.
• No fundamental change to the previous administrative view is required, but some clarifying amendments will be made to the VAT Application Decree (UStAE).
• The BFH ruled that providing a company car for private use constitutes a barter-like taxable transaction if contractually agreed and actually used privately.
• The employee’s work is considered the remuneration for the car’s private use, which is a taxable supply.

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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