Belgium changes VAT deduction rules for cars

On January 1, Belgium’s application of the deduction rules on cars changed, writes Automotive Digest. Previously, 50% of the VAT on cars could be deducted, but the deduction is now limited to the professional use of the car with a ceiling of 50%. The authorities have proposed three methods to determine the professional use of the car:

•A per-kilometre registration

•A semi-forfeit method: the private use is calculated based on the home-to-work distance x 2 x 200 days + 6,000km for weekends and holidays compared to the total kilometres driven by the car in one calendar year

•An optional forfeit method for fleets of more than four cars, resulting in a flat-rate deduction of 35%