VAT deduction on mixed-use vehicles – influence of COVID19

The FPS Finance publishes a circular on the use of methods for limiting the deduction of VAT on mixed-use vehicles (private and professional use).

The deduction of VAT on these vehicles is limited to professional use with a maximum of 50% (except for vans – 85%).

In this context, limitation methods have been introduced by the VAT administration (circular 36/2015 dated 23.11.2015):

• Method 1: real method based on a journey register;
• Method 2: semi-flat rate method: (Distance home-workplace X 2 X 200 +6000/total km )  X100 = % private km
• Method 3: flat rate method 35%

Source

• Aurelie Soldai
• KPMG