If a taxable person for VAT purposes has company cars that are also used for private purposes, then a VAT adjustment will need to be made. This has generally resulted in an adjustment of 2.7% of the catalog price of the car. There are several objections against this adjustment method. That is why many businesses have filed objections against the VAT adjustment in respect of earlier years.
The Dutch tax authorities have stated that if an objection was filed against the assessed amount of the VAT adjustment for the private use of a company car for 2011 or 2012, no objection will need to be filed for 2013. The approval on the website of the Dutch tax authorities states that the VAT adjustment for 2013 will be dealt with as an ex officio VAT adjustment. It is our understanding that this approval aims to reduce the number of notices of objections filed.
This is a practical measure that many taxable persons are expected to make use of. Please note that if the Dutch tax authorities do deal with the VAT adjustment for 2013 on an ex officio basis, it will not be possible to file a notice of objection or an appeal against this ex officio assessment. It is therefore advisable to file a regular notice of objection against the assessed amount of the VAT adjustment for the private use of the company car for 2013, in the following situations:
- if no objection was filed against the VAT adjustment for 2011 or 2012. The approval only applies if a notice of objection was filed against the VAT adjustment for 2011 or 2012;
- in the case of considerable interests and if you wish to retain all your rights. By formally filing a notice of objection, you retain the possibility to appeal the VAT adjustment before the court. This is not possible if the VAT adjustment is dealt with ex officio.
Please do not hesitate to contact us, should you wish further information on how to calculate the VAT adjustment for the private use of a company car and/or on how to file a notice of objection.