In a letter dated 7 February 2022, the German Federal Ministry of Finance comments, for the first time, on the VAT treatment of the increasingly popular use of electric vehicles and company bicycles. Fortunately, from now on, and for the past, the 1% regulation can also be applied to (electric) bicycles. However, the German Federal Ministry of Finance also clarifies that the various income tax benefits in this area do not apply to VAT. This means high administrative burdens for all entrepreneurs, who must determine different tax bases for income tax (especially wage tax) and VAT.
Source IVA
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