Can I also claim input tax on company vehicles?
May 2, 2023 | 30,00 EUR | answered by Tobias Waldmüller
Dear tax advisor,
I have a question regarding input tax and the possibility of claiming it for company vehicles. I am a self-employed entrepreneur and use a company vehicle for business purposes. So far, I have only claimed input tax for other business expenses, but I am unsure if I can also claim it for the vehicle.
My current situation is as follows: I mainly use the vehicle for client meetings, deliveries, and other business trips. The costs for the vehicle, such as fuel, insurance, and repairs, are fully reimbursed by the company. Now I wonder if I can also reclaim the input tax on these costs.
My concern is that I may be giving away money by not claiming the input tax on the vehicle costs. On the other hand, I do not want to have any difficulties with the tax office if I make a mistake. Therefore, I ask for your expertise on this matter and possible solutions on how I can correctly claim the input tax for my company vehicle.
Can you explain to me if and how I can claim input tax for my company vehicle? Are there any special rules or requirements that I need to consider? I look forward to your expert advice and thank you in advance for your help.
Best regards,
Guido Raab
Dear Mr. Raab,
Thank you for your question regarding input tax and the possibility of claiming it for business vehicles. It is understandable that you are unsure whether you can reclaim the input tax on the costs of your company vehicle. I will now explain in detail how you can correctly claim the input tax for your business vehicle.
In general, entrepreneurs can claim input tax on all business expenses, as long as these expenses are related to the entrepreneurial activity. This also applies to costs incurred in connection with a business-use vehicle, such as fuel, insurance, and repairs. Since you mainly use the vehicle for business purposes, you can generally reclaim the input tax on these costs.
To correctly claim the input tax for your business vehicle, you should consider the following points:
1. Separation of business and private use: It is important that you clearly separate the costs of the vehicle between business and private use. Only the costs incurred for business purposes can be claimed for tax purposes.
2. Recording of input tax: You must declare the input tax on the costs of the vehicle in your VAT return. For this, you must carefully keep all invoices and receipts and separately identify the input tax.
3. Input tax allocation for mixed use: If you also use the vehicle privately, you must allocate the input tax accordingly. The input tax can only be claimed for the business portion.
4. Documentation: Proper documentation of all business trips and costs is essential to answer any potential queries from the tax office.
Overall, it is indeed possible to claim the input tax for your business vehicle, as long as you consider the points mentioned above. If you are unsure, I recommend seeking support from a tax advisor to avoid potential errors and fulfill your tax obligations correctly.
I hope that my explanations are helpful to you and I am available for further questions.
Best regards,
Tobias Waldmüller
