Vat on Fringe benefit - medical expenses

[Dave A]

Hopefully this clear the air:

On 1 March 2011 the tax legislation relating to company cars provided to employees changed. The definition of “determined value” has been amended by omitting the exclusion of VAT in the determined value. The fringe benefit has to be calculated on 3,5%, unless the vehicle includes a maintenance plan, in which case the benefit is calculated on 3,25%. This is an amendment from the 2.5% basis for calculation used last year.

That's an increase of nearly 50% on taxable value

I'm surprised there hasn't been riots

[geraldenek]

That's an increase of nearly 50% on taxable value

I'm surprised there hasn't been riots

It is the employee paying for this - don't think everyone is aware of this.