Change in VAT for employee benefits or gifts with own contribution in the Netherlands

The Dutch Tax Authority has announced a change regarding VAT for employee benefits or gifts.
Until January 1, 2024, businesses could deduct the employee’s contribution (excluding VAT) from their expenses.
If the expenses fell below the BUA threshold of €227 (excluding VAT), the VAT could 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 now be compared to the threshold, as determined by the VAT Act.

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.