Coffee & Consulting: Tax challenges with your company car

EU regulation •

EU regulation • Company car usage • for business purposes • Direct route for commuting between home and work (no other private usage) with indication in the employment contract • Adjustment of employment contract: • Custom’s office can require: copy of employment contract • Private usage only for commuting between residence and work location or specific task • Any further usage is subject to custom EU ordinance EU2015/234 as of 1 May 2015 • Registration of car for free traffic • In principle: 10% duty of company car in case the car is not produced in the EU • Import tax: Germany 19%, France / Austria: 20%, Italy 22% • VAT on private usage Tax challenges with your company car J u n e 1 3 , 2 022 COPYRIGHT © CONVINUS 5

Sample 1: Cross-border commuter - Switzerland • Swiss employer • Work location: Switzerland • Residence: Germany • Company car which is registered in Switzerland • Daily commuting between work location and residence • Usage for: private and company purposes • Switzerland: • private usage has to be added and is subject to social security and VAT • no customs Switzerland: Purchase price: cHF 40’00 excl. VAT Private usage: 0.9%, min. CHF 150 CHF 40’000 x 0.9% = CHF 360 per month • Swiss social security contribution • Tax at source: 4.5% • VAT: 7.7% Tax challenges with your company car J u n e 1 3 , 2 022 COPYRIGHT © CONVINUS 6