Change in VAT for employee benefits or gifts from 1 January 2024 in the Netherlands

• From January 1, 2024, there will be a change in the VAT for employee benefits or gifts.
• Currently, you can deduct the employee’s contribution (excluding VAT) from the expenses until January 1, 2024.
• If the expenses fall below the BUA threshold of €227 (excluding VAT), you can deduct the VAT on the expenses.
• From January 1, 2024, you will no longer be able to deduct the employee’s contribution from the expenses if it exceeds the BUA threshold.
• The total expenses will be tested against the threshold determined in the VAT Decree.

Source: belastingdienst.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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