Private use - Insight into your VAT adjustment 2018

11/01/19

The VAT adjustments for private use of goods and services, bought for business purposes by a business but (partly) used for private purposes, need to be calculated and included in the last VAT return of each financial year.

In the publication ‘Private use – Insight into your VAT adjustment 2018’, we give an overview of the adjustments that are covered by the current relevant VAT legislation.

In this publication we give a general insight on the various categories of private use and adjustment mechanisms.

The following adjustments are discussed: total exclusion of VAT deduction on hospitality/catering costs, the VAT Deduction Exclusion Decree (‘Besluit uitsluiting aftrek omzetbelasting 1968’ - further: BUA), VAT on deemed supplies such as the private use of a company car, and VAT adjustment for the private use of immovable property labelled as a business asset.

In practice, the VAT adjustment for the private use of a company car usually constitutes the most significant financial interest. Therefore, in this publication we pay specific attention to this adjustment.

The publication ‘Private use – Insight into your VAT adjustment 2018’ does not provide for an exhaustive overview of all relevant rules and regulations.

If you would like more information on VAT adjustments and the possibilities for your business, please contact your PwC Indirect Tax advisor who will be happy to assist you further.