As VAT entrepreneur you are entitled to recover input VAT on costs if you purchase goods and services and use them for VAT-taxable activities. This entitlement to VAT recovery does, in principle, not apply in so far as the use of the goods and services in question is of a consumptive nature. The Dutch legislation includes a correction method based on the VAT Deduction Exclusion Decree (‘Besluit Uitsluiting Aftrek 1968, hereinafter: “BUA”). You have to calculate your annual VAT adjustment for private use and process the results in the last VAT return of the year.
Source Deloitte
Other newsletters on ”BUA” in the Netherlands, click HERE
Latest Posts in "Netherlands"
- Court Decision on Tax Rate for Art Products: Classification and Maker Status Dispute
- Tax Deduction Dispute: Business Use of Apartment and VAT Reclaim Rights in Court Ruling
- Peppol E-Invoicing in the Netherlands: Digital Transformation and Future Integration Strategies
- Guidelines for New VAT Rules on Mixed-Use Properties Effective from July 2025
- 7 Tips to Speed Up VAT Return Processing and Minimize Delays
