Are you self-employed or a freelancer? Good chance that you have to file your VAT return (btw-aangifte) quarterly. The end of 2021 is in sight, which also means that it’s almost time for your last VAT return of the year. You have the entire month of January to submit and pay your VAT return for the 4th quarter. But don’t wait too long with this; it may be the case that it is slightly different than usual due to the VAT corrections. In this article, we explain when you have to make VAT corrections.
Do you have questions about the VAT return, or could you use some help? We take care of this entirely and submit the correct return for you. Fill in our contact form or call us on 020 – 2170120.
VAT correction for the company car
It can be that you spend a little longer on the VAT return for the fourth quarter than usual. You should not forget to make the VAT adjustments if necessary. This is the case when you also use certain business expenses for private purposes.
A good example is the use of your business car. All the VAT you paid on the purchase, maintenance, and use is fully deductible if you only drive the car for business intentions. Please note that commuting is seen as private use for the VAT return. So did you partly drive the car privately? Then you must correct this part in your VAT return for quarter 4. It makes sense that not everyone keeps track of precise private use. Therefore, you may assume 2.7% of the list price (incl. VAT). For older cars (5 years in the company), you can use 1.5%.
VAT correction for gifts
Have you ever given a gift to relations and staff that they use privately? Check per relation and employee whether this is more than €227,- excluding VAT. Is this the case? Then you must correct the VAT if you have deducted it in the VAT return for quarter 4. In Dutch, we also call this the BUA correction (Besluit uitsluiting aftrek omzetbelasting).
Help with your VAT return
Of course, we can help you submit a correct VAT return. So do you have questions about VAT or any other tax-related topic? Contact us using the details below.
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