General rules
Generally, there are three methods available to determine the business use of cars (as described in article 45, 搂 2, first intend VAT Act) and, consequently, the right to deduct input VAT on the expenses incurred in relation to these cars. These methods are as follows:
- Method 1: the VAT taxable person keeps a daily journey-administration;
- Method 2 鈥榮emi-presumptive鈥�: the business use is calculated on the basis of a specific formula developed by the Tax Authorities, whereby the % private use = ((distance home-work x 2 x 200 + 6000) / total distance) x 100. The % business use is then equal to 100% - the % private use.
- Method 3 鈥榩resumptive鈥�: the business use is determined at a presumptive rate of 35%.
Adjustment for calendar year 2020
Due to the exceptional situation created by the lockdown and teleworking, the formula in the 'semi-presumptive' calculation method 2 is skewed. Therefore, Minister of Finance Vincent Van Peteghem allows VAT payers who normally use calculation method 2, to exercise their right to deduction via the general presumptive rate of 35% (= method 3 'presumptive'). The concerned VAT taxable persons may, if they wish, combine the 'semi-presumptive' method 2 and the 鈥榩resumptive鈥� method 3, despite the fact that this is normally prohibited. Excepting the timing relating to the application of method 3 (see below), the other conditions for the application of methods 2 and 3 remain unchanged.
These measures only apply to calendar year 2020.
As of calendar year 2021
As from calendar year 2021, the concerned VAT taxable persons can use again the 'semi-presumptive' method 2. Accordingly, they do not have to take into account the obligation to use the general presumptive rate of 35% for at least four calendar years.
Source in NL:
Source in FR:
Explore
Connect with us
- Find office locations kpmg.findOfficeLocations
- kpmg.emailUs
- Social media @ 乐鱼（Leyu）体育官网 kpmg.socialMedia