Private consumption taxed as self-supply
"Self-supply" means the transfer without charge of goods forming part of the business assets and provision of services without charge by a taxable person as well as use without charge of goods forming part of the business assets by the taxable person itself, its employee, servant or member of the management or control body for personal purposes or for purposes other than business.
The transfer or use of goods in the abovementioned cases shall be deemed to be self-supply if the taxable person has deducted the input value added tax on the goods or a part of the goods from its calculated value added tax in full or in part.
In the case of self-supply, the taxable value shall be the purchase price or, in the absence thereof, the cost price of the goods or the cost price of the services. If self-supply is the granting of use of a lorry of the employer with a gross weight not exceeding 3,500 kilograms for the purposes of the Traffic Act or, in the mentioned below (e.g., taxi, driving school vehicle), the granting of use of the automobile of the employer for purposes other than a task, duty or function or activity related to business, the taxable value of the specified supply, including the value added tax, is the price of a fringe benefit calculated on the basis of the Income Tax Act.
Exemptions for the use of employer’s passenger car
Use of an automobile for purposes other than business, shall not be deemed self-supply, except in the cases specified below:
- an automobile is used mainly for the carriage of passengers and on condition that the taxable person has a Community licence and a certified copy of the Community licence or, in the case of the provision of taxi service, a taxi licence and a licence card;
- an automobile is mainly used for driving lessons on condition that the taxable person has a motor vehicle driver’s training permit or the taxable person provides the service of a motor vehicle driver’s instructor to a person that has the motor vehicle driver’s training permit.