Commuting also qualifies as private use for VAT purposes when many people work from home

• The Supreme Court has ruled that commuting counts as private use, even if employees work from home.
• X BV leased cars to its employees from 2011-2017 and argued that the flat-rate scheme for private use resulted in excessive VAT.
• However, the court rejected this argument, stating that commuting is considered private use and that both fixed and variable expenses must be allocated to that use.
• The fact that employees can work from home does not change the nature of their journeys to and from the office.
• X BV and the Secretary of State plan to appeal, but the Supreme Court has found their appeals to be without merit.

Source Taxlive

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