Do I have to record input tax separately for company vehicles used for business purposes?
July 22, 2022 | 40,00 EUR | answered by Roberta Schlattmann
Dear tax advisor,
I have a question regarding input tax for vehicles used for business purposes and I hope you can help me. Currently, I am self-employed and use several vehicles for my business. So far, I have simply recorded the vehicle costs as a total amount and deducted the input tax accordingly. However, I have heard that it is important to separately record the input tax for vehicles used for business purposes.
I am concerned that I may have made mistakes in recording the input tax for the vehicles and that this could result in tax disadvantages. I want to ensure that I document everything correctly and properly to avoid any issues with the tax office.
Could you please explain to me if it is indeed necessary to separately record the input tax for vehicles used for business purposes? If so, how should I proceed and what information is needed? Is there a specific approach or software that can help me correctly record the input tax?
Thank you in advance for your assistance.
Best regards,
Paul Bittner
Dear Mr. Bittner,
Thank you for your question regarding the recording of input tax for commercially used vehicles. I am pleased that you are considering documenting your tax affairs correctly. Indeed, it is important to record the input tax for commercially used vehicles separately in order to fully utilize tax benefits and avoid possible errors.
In general, you can only claim input tax for commercially used vehicles if these vehicles are used exclusively or predominantly for business purposes. If you have recorded the vehicle costs as a total amount, it is possible that you have not correctly deducted the input tax for private use. By separately recording the input tax for commercially used vehicles, you can ensure that only the input tax for actual business use is claimed.
To record the input tax for commercially used vehicles separately, you should breakdown the costs for each vehicle. This includes, for example, acquisition costs, repair and maintenance costs, fuel costs, insurance costs, vehicle tax, etc. These costs should then be divided according to business and private use in order to correctly record the input tax.
There are various software solutions that can help you record the input tax for commercially used vehicles. These programs allow for professional recording and allocation of costs as well as clear documentation. It is advisable to use such software to facilitate tax recording and processing and avoid possible errors.
I hope that this information has been helpful to you. If you have any further questions or need assistance, I am available to help. Thank you for your interest and attention.
Best regards,
Roberta Schlattmann, Tax Advisor
