General rules
Generally, there are three methods available to determine the business use of cars (as described in article 45, § 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 ‘semi-presumptive’: 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 ‘presumptive’: the business use is determined at a presumptive rate of 35%.
Source KPMG
