VAT on the sale price of a car subject to a deduction limitation is calculated based on the taxable amount

VAT on the sale price of a car subject to a deduction limitation is calculated based on the taxable amount. Here are the key points:

1. Deduction Limitation: When a car is subject to a deduction limitation for VAT, it means that the VAT deduction at the time of purchase is restricted. Typically, this limitation applies to cars used for both business and personal purposes, and it restricts the amount of VAT that can be reclaimed.
2. At the Time of Sale: When selling a car with a deduction limitation, VAT is applicable on the sale price. The VAT is calculated based on the taxable amount, which often means that only a portion of the sale price is subject to VAT, the purchase price remains fully subjectto VAT. This aligns with the deduction limitation that was in place during the initial purchase of the car.

Source

• Circulaire AAFisc Nr. 36/2015 (nr. E.T.119.650) dd. 23.11.2015
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