European Union Gazettes Decisions Approving Croatian, Estonian VAT Deductions on Non-Business Use of Passenger Cars

The European Union Official Gazette Nov. 17 published Council Decisions Nos. 2021/1997 and 2021/1998, approving Croatian and Estonian VAT deductions on the non-business use of passenger cars. The decisions include measures: 1) authorizing Croatia and Estonia to restrict the right of VAT deductions to 50 percent for expenditures incurred for specific passenger car leases which are not wholly used for business purposes; 2) relieving taxpayers from having to treat the non-business use of such passenger cars as a supply of services in Croatia; and 3) relieving taxpayers from being required to account for taxes on the private use of the ...