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ABC CONSULTING

Comptabilité & Fiscalité

VAT: New rules on deductibility for car costs

Since 1 January 2013, the measure which tends to limit the right to deduct VAT from investment goods and the costs relating thereto is applicable.

For a property which is acquired by a company or by a natural person and which is also used privately, it will be necessary to determine the proportion between private and professional use.

To determine the professional percentage of use of a vehicle, three methods are proposed by the Administration. Here is an overview:

The first method consists in keeping an exhaustive register of journeys. This method supposes the conservation of some data: journey dates, departure and arrival address, kilometers traveled per trip, total kilometers traveled per day,…

The second method consists of the following semi-flat formula:

% Private = (Distance from home to work x 2 x 200) + (6,000 x 100)

Total annual distance

The third method consists of a general package for companies which have at least 4 means of transport of the same type.