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A company inquired whether making vehicles available to executives for both business and private use, without affecting their salary, constitutes a taxable supply subject to VAT. The DGT ruled that, as there is no direct consideration or reduction in salary, it is a gratuitous supply not subject to the tax.
This ruling clarifies that the provision of company vehicles for private use does not trigger VAT if it is not treated as a benefit in kind through salary adjustments.
The tax team reviews your specific situation.
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