Can I also deduct the input tax for my private vehicle if I use it for business purposes?
May 16, 2023 | 40,00 EUR | answered by Phillip Buchner
Dear tax advisor,
My name is Sven Werner and I run a small business for which I also use my personal vehicle for business purposes. I have heard that it is possible to deduct the input tax for the vehicle if it is also used for business purposes. However, I am unsure if this is possible in my case and how best to implement it.
Currently, I use my personal vehicle for about 70% for business purposes, such as customer visits, deliveries, or business meetings. The rest of the usage is for personal trips. I have carefully documented all receipts and records of the business use of my vehicle in order to claim my input tax.
My concern is that I may make mistakes in calculating the input tax or not have all the necessary documents to correctly apply for the deduction. Therefore, I would like to know from you if and how I can deduct the input tax for my personal vehicle. Are there any specific rules or requirements that I need to consider? And what steps do I need to take to correctly carry out the deduction of the input tax?
I would be very grateful if you could help me with this question, as it is an important financial matter for me as a self-employed individual. Thank you in advance for your assistance.
Kind regards,
Sven Werner
Dear Sven Werner,
Thank you for your detailed inquiry regarding the input tax deduction for your private vehicle that you also use for business purposes. It is correct that under certain conditions, you can claim input tax for the acquisition, rental, or use of your vehicle for business purposes. In your case, where your vehicle is used for about 70% business purposes, it is indeed possible to deduct the input tax.
To correctly carry out the input tax deduction for your private vehicle, you must adhere to certain rules and conditions. Firstly, it is important that you have carefully documented all receipts and records of the business use of your vehicle, as you have already mentioned. This includes fuel receipts, mileage logs, invoices for repairs and maintenance, as well as any other expenses related to the business use of your vehicle.
It is also important to note that you can only claim the input tax for the actual business journeys used. This means that you cannot include the costs for the private use of your vehicle in the input tax deduction. Therefore, it is advisable to clearly separate business and private trips and only include the costs for business use in the input tax deduction.
To correctly carry out the input tax deduction for your private vehicle, it is best to work with your tax advisor. Your tax advisor can assist you in collecting all necessary documents, properly documenting the business use of your vehicle, and correctly stating the input tax deduction in your VAT return.
In summary, it is indeed possible to deduct the input tax for your private vehicle if it is also used for business purposes. By carefully documenting all necessary documents and working with your tax advisor, you can correctly carry out the input tax deduction and optimize your financial situation as a self-employed individual.
I hope this information has been helpful to you, and I am available to assist you further if you have any more questions.
Best regards,
Phillip Buchner
