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Last VAT declaration of the year requires attention


Last VAT declaration 2011 in 2012
Company car

With effect from 1 July 2011, the law on VAT private use has been changed. to pay, which is due for cars of the business used for both business and private purposes, modified. The link with the flat-rate rules in the income and wage tax has been abandoned.

Below is an explanation of how the correction for the company’s car should be included in the tax return form for the last period of 2011. Two corrections have to be made, namely one correction over the period up to 1 July 2011 and one correction over the period after 1 July 2011.

Adjustment VAT private use car until 1 July 2011
For the period from 1 January 2011 to 30 June 2011, the formula for the calculation of the VAT due for private use of the company car is: 181/365 * 12 % * [25% or 20% or 14% or 0%] * list price including VAT and BPM  of the car 

Adjustment VAT private use from July 1, 2011
On December 20, 2011, the state secretary of finance issued a decree on how to deal with the
Correction for the company car from July 1, 2011.

If no mileage administration is maintained, the VAT due on private use is set at 2.7% of the list price including VAT and BPM. This amount can still be indicated once a year, at the latest in the last tax return period of the year. For 2011, this means that if no mileage administration is kept, an amount equal to 184/365 * 2.7% * the list price of the car must be paid. 

Unfortunately, this new scheme is more expensive for environmentally friendly cars. So we have to look for other tax-friendly solutions.

If the entrepreneur performs exempt services, then you do not have to correct anything because you are not eligible for the VAT deduction. In the case of mixed performances, you must allocate the costs and thus the VAT or distribute them in percentage.
Gray sign van
If a van is only used for commuter traffic, it is not necessarily necessary
keep a mileage administration to calculate the VAT due. In that case, it is sufficient to determine the distance between home and work and it is only necessary to keep track of how often such journeys take place. On the basis of the number of days can then be calculated how much VAT is attributable to the private kilometers driven (commuting).

Instead of actually keeping track of the number of days, a fixed number of working days of 214 days per calendar year may also be assumed for a fully worked year.

Car purchased without VAT
As with previous decisions, this decree also includes an allowance for the car of the item purchased without deduction of VAT (eg a margin car or car purchased from a private individual). The VAT that applies to such a car for maintenance and use is deductible as far as the car is
used for VAT-related services. It has been approved that in the case of no mileage administration the VAT will be paid over 1.5% of the list price including VAT and BPM and that the VAT charged will be deductible. This regulation applies retroactively and with effect from 1 July 2011. The old, more advantageous scheme (the 75% scheme) was only withdrawn with effect from 17 October 2011.

Small business arrangement
The small business arrangement (KOR) means that an entrepreneur who in less than € 1,883 in a calendar year
tax is payable, is eligible for a reduction of sales tax. The reduction depends on the tax payable in a calendar year after deduction of input tax.

And further:
Adjustment of staff provision € 227
Correction gas, water and light
Correction previous VAT returns

Please note: the monthly declaration must be paid before the end of the month and must be received by the tax authorities
The annual declaration must be received by 31 March 2012 at the latest

In some cases it may be fiscally convenient not to date the last invoices in December but on 1 January of the new year so that you are eligible for the small business arrangement (KOR)

Do not forget the provisional reduction for the small business arrangement when calculating the last reduction.

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