Can input tax also be claimed for company vehicles?
November 28, 2023 | 40,00 EUR | answered by Marco Schottmann
Dear tax consultant,
I am Alexander Schlattmann and I operate a small business in the transportation industry. In my business, company vehicles are used to transport goods. Now I am wondering if I can also claim input tax for these company vehicles.
Currently, I am unsure if input tax is applicable for company vehicles and if I can accordingly report it in my VAT return. My concern is that I may be missing out on tax advantages by not correctly considering the input tax.
Could you please explain to me if and under what conditions input tax can be claimed for company vehicles? Are there specific regulations or restrictions that I need to be aware of? What steps are necessary to correctly record the input tax and report it in my tax return?
I would greatly appreciate your assistance in this matter to ensure that I am not missing out on any tax opportunities.
Thank you in advance for your support.
Kind regards,
Alexander Schlattmann
Dear Mr. Schlattmann,
Thank you for your inquiry regarding input tax for company vehicles in your transport company. As an expert in tax matters related to input tax, I am happy to assist you and provide you with the necessary information.
In principle, you can claim the input tax, i.e. the VAT paid for business purposes, for company vehicles. This applies specifically to the acquisition, leasing, or repair of vehicles that you use for your business. The input tax can be considered as an advance deduction from the VAT that you must remit to the tax office.
However, there are certain conditions and regulations that you must observe in order to correctly claim the input tax. Firstly, the vehicles must actually be used for business purposes. This means that they must be used exclusively or predominantly for your company. Private use must be appropriately excluded.
It is also important that you can provide proper invoices for the payment of input tax. These invoices must contain all necessary information to be accepted as an input tax deduction. This includes the name and address of the supplying company, the date of issue of the invoice, the tax number, the type and quantity of goods delivered or services provided, and the specified tax amount.
To correctly record the input tax and declare it in your VAT return, you must document the corresponding amounts in your accounting. You can then declare the input tax in the VAT return and offset it against the VAT you collect from your customers. Be sure to keep all necessary documents to be able to prove, in case of a possible tax office audit, that you have correctly claimed the input tax.
I hope this information helps you and answers your question regarding input tax for company vehicles in your transport company. If you have any further questions or need assistance, please feel free to contact me.
Best regards,
Marco Schottmann
