Input VAT on acquisition of cars (1.4.2014)

As from 1.4.2014 the main criterium for deduction of input VAT is the extent, to which the vehicle is used for business purposes. Accordingly, also the passenger cars may entitle the VAT-payers to deduct the input VAT in full, if the mileage-log substantiates that the car has been utilized solely for business purposes and if the acuisition (leasing etc.) has been reported to tax authorities in a timely manner. Otherwise, the limit of 50% applies.