Belgium: VAT deduction for mixed-use cars; adjustment to calculation for 2020

Belgium: VAT deduction for mixed-use cars

Relief is provided to taxpayers with regard to input value added tax (VAT) deductions related to cars used for personal and business purposes for 2020.


In general, there are three methods available to determine the business use of cars (for VAT purposes) and the right to deduct input VAT on expenses incurred in relation to these cars:

  • Method 1—The VAT-able person keeps a daily journey or log.
  • Method 2 “semi-presumptive”—The business use is calculated on the basis of a specific formula developed by the tax authorities. The formula determines the percentage of personal use, from which the percentage of business use can be determined.
  • Method 3 “presumptive”—The business use is determined at a presumptive rate of 35%.  

Relief for calendar year 2020

Due to the exceptional situation created by the coronavirus (COVID-19) pandemic-related lockdown and teleworking by many employees, the formula in the “semi-presumptive” calculation method is skewed.

Therefore, VAT payers who normally use Method 2 can exercise their right to deduct under the general presumptive rate of 35% (of Method 3). VAT-able persons then may combine the “semi-presumptive” method and the “presumptive” method, despite the fact that this is normally not allowed. Except for the timing relating to the application of Method 3 (see below), the other conditions for the application of Methods 2 and 3 remain unchanged.

These measures only apply to calendar year 2020.

Relief for calendar year 2021

For calendar year 2021, the concerned VAT-able persons can use again the “semi-presumptive” method and do not have to take into account the obligation to use the general presumptive rate of 35% for at least four calendar years.

Read a March 2021 report prepared by the KPMG member firm in Belgium

© 2022 KPMG LLP, a Delaware limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.

For more detail about the structure of the KPMG global organization please visit

The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us