- VAT Deductions and Corrections: At the end of the financial year, VAT corrections are required for private use of business assets, including personal use of company cars and services provided for personal purposes. Corrections must also account for withdrawals for personal consumption, requiring adjustments based on mixed-use scenarios.
- Private Use of Energy, Water, and Agricultural Products: The Tax and Customs Administration publishes standard amounts annually for private consumption of energy, water, and agricultural products, necessitating VAT corrections in the final VAT return of the year. These standards apply to all entrepreneurs, including SMEs.
- Car Use and VAT Calculations: For private use of company cars, VAT must be calculated based on either a flat rate (2.7% or 1.5% for older cars) or a detailed mileage administration if maintained. Commuting is categorized as private use for VAT purposes, and specific rules apply to personal contributions for private car use, which must be reflected accurately in the VAT return.
Source Carola van Vilsteren
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