For individual entrepreneurs (ZZP'ers), the workplace is often located at home. Moreover, if an entrepreneur is a VAT payer (BTW), then by purchasing goods and services for the arrangement of his working space, he is entitled to a VAT refund. However, such a return is possible only under certain conditions.
Condition #1
VAT refundable exclusively for costs related to the working space and forming a turnover subject to VAT. For example, this is the purchase of a computer that is used exclusively for business, as well as a desktop and chair. The VAT payer must prove that the purchased products are fully related to the workspace used for the turnover subject to VAT. That is, VAT on the cost of arranging the entrepreneur's home workplace is refundable to the extent that the property is used for commercial purposes - for the provision of services subject to VAT.
How to determine the amount of compensation?
When ZZP'er sets up a workspace in a private home, the cost of internet, electricity and cleanliness applies to the entire home. As a result, the VAT paid on these costs does not apply only to the workspace, so you must determine to what extent the costs are related to the workspace. The most commonly used method is calculation of VAT refund depending on the living area. This means that if the workplace occupies 20% of the house, then you can claim a refund of 20% of the accrued VAT.
Condition #2
It is vital that ZZP'er can clearly show what the VAT refund is based on. To do this, you must have invoices that meet the requirements. It is very important that each such invoice is addressed to the VAT payer and his name is indicated there correctly. If an entrepreneur cannot justify a VAT refund, he must pay it off, moreover, the amount can be increased due to a fine.
Situation examples
Situation 1. The entrepreneur provides both VAT-exempt and VATable services. How to proceed? It is necessary to determine the percentage of those and other services.
Situation 2. The entrepreneur purchased property in the past and fully or partially refunded VAT on this purchase. However, the property is no longer used for commercial purposes. What to do? VAT in this case should be reviewed. This change must be declared on the last VAT return for the financial year and may result in additional tax being paid to the tax authorities.
As a reminder: When ZZP'er makes purchases for a business, anything over 450 euros excluding VAT is considered an asset. You can recover VAT immediately, but this asset itself must be depreciated gradually. For immovable property, the herzieningstermijn (depreciation period) is ten years, for movable property it is five years.
The VAT adjustment due to the recalculation must be shown on the VAT return (BTW-aangifte, bij vraag 5b). How to calculate VAT adjustment? Consider an example. An entrepreneur buys a computer for 1000 euros + 210 euros VAT, which he initially uses exclusively for business. Depreciation period is 5 years. From the third year he uses the computer 50% privately. At this time, the entrepreneur must adjust 210 euros x 50% x 1/5 = 21 euros.
So let's sum it up. Many ZZP'ers who pay VAT purchase goods and services to organize and maintain their workplace at home. In principle, they are entitled to receive a VAT refund. However, the following conditions must be taken into account: 1) we are talking only about costs related to the working space and forming a turnover subject to VAT; 2) the entrepreneur must clearly justify the return with invoices.
Publication Date: 06.12.2022
