The VAT treatment of company cars is a complex topic, and Luxembourg and some neighboring countries have released specific administrative guidance on this issue. Following a European Union judgment in January 2021, some tax authorities are reviewing their practice regarding VAT and company cars used for private purposes.
Source PwC
See also
- ECJ -288/19 (QM) – Judgment – Definition of short term hiring of vehicles, company car provided to an employee is not a service provided for consideration
- Belgium – Circular 2023/C/72 on the place of taxation for VAT purposes of the provision of a commercial vehicle to a staff member in a cross-border context
- Luxembourg – Circular 807bis – Provision of cars to employees – Rental for consideration – Place of taxation
