- The Dutch Tax Authority has announced a change in the VAT rules regarding employee benefits or gifts.
- Currently, businesses can deduct the employee’s contribution (excluding VAT) from their expenses until January 1, 2024.
- If the expenses fall below the BUA threshold of €227 (excluding VAT), the VAT can be deducted.
- However, starting from January 1, 2024, businesses will no longer be able to deduct the employee’s contribution from their expenses when calculating the BUA threshold.
- The total expenses will need to be compared to the threshold as determined by the VAT Act.
Source: fiscaalvanmorgen.nl
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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