Netherlands: Final VAT returns corrections | KPMG | GLOBAL
Share with your friends

Netherlands: Final VAT returns corrections; promotional gifts, company cars

Netherlands: Final VAT returns corrections

A final value added tax (VAT) return for 2017 may require a correction in light of the VAT “deduction exclusion decree.”


Related content

The VAT deduction exclusion decree precludes the recovery of VAT (also referred to as input VAT) on promotional gifts and employee or staff benefits if the gifts or benefits were provided “free of charge” or at below cost by the business or employer. It is irrelevant whether a business had a commercial reason for providing the gifts, or employee or staff benefits. The rationale for not allowing input VAT to be recovered is based on the fact that these costs—while business-related—are consumption-oriented, and VAT is specifically designed for tax consumption. 

Benefits threshold

It is not necessary to make a VAT deduction exclusion decree adjustment if the total purchase and development costs (the cost price) of the benefits are less than €227 (excluding VAT) per recipient, per year. If the €227 threshold is exceeded, the input VAT on the threshold amount is non-recoverable.

Private use of company cars

The private use of company cars made available to employees is regarded as a service provided to the employee by the employer. The employer is to remit VAT on this service in the final VAT return for the financial year, in most cases this is the December VAT return or the fourth quarter return. 


Read a December 2017 report prepared by the KPMG member firm in the Netherlands

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in 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


Request for proposal