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Is a logbook required for car allowance?

November 10, 2014 | 25,00 EUR | answered by Anton Pernitschka

Good evening,

As an employee in sales, I use my private car to travel to customer appointments. For this, I receive a car allowance of 700 EUR/month, which is taxed through the payroll tax card.

I calculate the actual travel/driving costs through regular, very detailed expense reports with my employer tax-free at 0.30 EUR/km. These reports include the usual information as well as the license plate number, departure, destination, route, distance, etc. HOWEVER, they do not include the initial and final reading of the car's odometer.

In my income tax return, I want to claim the additional expenses (actual kilometer rate minus 0.30 EUR) as business expenses.

I determine the actual kilometer rate using an Excel spreadsheet listing all cost receipts. Each fuel receipt includes the mileage at the time of refueling. Additionally, the workshop invoices and insurance policy show the mileage. I manually record the initial reading on January 1st and the final reading on December 31st. This results in an actual kilometer rate of 0.62 EUR/km.

I now want to claim 0.32 EUR (0.62-0.30/km) for tax purposes. I only want to invoice the above-mentioned business trips. These trips are very detailed, documented, checked, approved, and paid out by my employer's accounting department (>4,000 employees). Therefore, I believe it should be unquestionably proven that the business trip with the corresponding kilometers actually took place.

The tax office denies the deduction of any additional expenses because there is no logbook.

I cannot find correct data on the internet, as this is neither a company vehicle nor a business. I am aware that at least 20 of my colleagues also invoice this way with their tax office without a logbook and it is easily accepted. However, I cannot use this as justification.

I am requesting information on whether keeping a logbook is mandatory or if fuel receipts with mileage are sufficient. I would appreciate a corresponding legal source and/or ruling.

Thank you, best regards.

Anton Pernitschka

Dear inquirer,

In the context of an initial consultation and your fee commitment, while observing the regulations of this forum, I would like to answer your question.

If you use your own vehicle for business-related trips, you can choose whether to claim the travel cost lump sum (business travel lump sum for each kilometer driven) or to claim the actual costs as deductible expenses.

In the latter case, the travel costs can also be proven using an individual kilometer rate. When calculating the individual kilometer rate, all costs associated with the maintenance of the vehicle can be taken into account. This includes fuel costs, depreciation of the vehicle, repair costs, taxes, insurance, loan interest, among others.

There is no obligation to keep a logbook. However, a logbook can alternatively be kept according to § 6 para. 1 no. 4 sentence 2 EStG if the total expenses incurred for the vehicle are proven by receipts and the ratio of private to other trips is documented.

Since you are not required to keep a logbook, or actually do not keep a logbook, the strict requirements for a logbook are not applicable. Detailed information about the initial and final odometer readings of the vehicle is not necessary, especially since detailed travel expense reports are provided to the employer and your own expenses can be proven additionally.

The response was based on your description of the situation. Missing or incorrect information about the actual circumstances can affect the legal outcome.

Best regards,

Anton Pernitschka
Tax advisor