Correction VAT private use car after 5 years 1.5% instead of 2.7% Entrepreneurs who have private company cars whether or not their staff use the company car privately must pay VAT at the end of the year to compensate for private use.
This can be done by the ratio of actual private kilometers set against the total use.
If mileage administration is not maintained, use the flat rate percentage 2.7% or now 1.5% .
ATTENTION: Residential work traffic is also private use! Or as the legislator says “private purposes”
For vehicles older than 5 years, a lower VAT addition will apply.
The flat-rate VAT
addition for private use of the company car is reduced for cars that are in use for longer than five years (including the year of commissioning).
From now on, the depreciation period of 5 years will be taken into account.
Entrepreneurs and employers who make use of the flat-rate scheme only have to pay 1,
5% of the catalog price (including VAT and BPM).
In 2011, the percentage was changed from 12% over the gross addition to 2.7% of the catalog value (inclusion VAT and BPM).
The VAT benefit per year can be considerable.
In the case of no flat-rate arrangement , the provision of a car must be determined according to the normal value.
In short, application of the normal value means that it must be determined what amount the entrepreneur would have to pay ‘in the market’ in order to be able to use the car for (for example) an employee for private purposes. And they can only come up with that in The Hague
Is it a margin car,
even then the lower percentage of 1.5% can be used.
The addition is not changed for wage tax and income tax.
With regard to payroll tax, the employer must unfortunately pay all employer’s premiums on the gross addition, with the exception of the pension. This in the context of the uniform pay concept.