VAT Deductibility on Leased Vehicles for Employees: TEAC Ruling

• A recent ruling by the TEAC addresses the deductibility of VAT on leased vehicles used for mixed purposes by employees.
• The taxpayer must prove the vehicles are used for business purposes to deduct VAT.
• If the vehicles are used for mixed purposes, a 50% presumption of business use applies.
• The 50% presumption can only be adjusted if the administration proves a different level of business use.
• The administration cannot use collective bargaining hours to determine business use.
• The administration must use alternative methods to prove business use.
• The 50% presumption is rebuttable, meaning the taxpayer can prove a higher level of business use.
• The administration must prove a lower level of business use if the taxpayer claims a higher deduction.

Source: audiconsultores-etlglobal.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.

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