Belgium – Advertising on cars

Decision No. E.T. 129.852 of 15 June 2016 provides that applying advertising (e.g. paint in a particular colour, the name of a business or advertising texts) to a vehicle should not be considered a service on a vehicle (and thus a car cost) but rather as an advertising service. Consequently, the VAT imposed on this advertising expenditure is not covered by the limitation of the deduction right to 50% of the VAT paid provided in article 45(2), first paragraph, of the VAT Code.

Source: ibfd.org

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