Ask a tax advisor on the topic of Input tax

Inputtext: Vorsteuer und Abschreibung Firmen KFZ Translated text: Input tax and depreciation for company vehicles

March 24, 2017 | 40,00 EUR | answered by Oliver Burchardt

I am a freelancer, and I have purchased a 3-year-old used car with value-added tax, which I would like to include in my business assets. Estimated usage: 50-70% for business purposes.

1. Do I need to inform the tax office about the usage as an assigned company car, or is it sufficient to do so at the end of the year?
2. How can I get the input tax back? Do I need to register in an input tax return, or can I do it alternatively in the annual turnover tax return? In which line of the form should this be entered?
3. I assume that depreciation has nothing to do with input tax. Is that correct?
4. The car has already been depreciated over 3 years by a leasing company. Can I now depreciate the purchase amount over only 3 years, or does it have to be 6 years?

Oliver Burchardt

Dear inquirer,

Thank you for your inquiry, which I am happy to answer as part of an initial consultation.

Regarding your questions:
1. You do not need to inform the tax office about the allocation. If you handle the car correctly in your profit determination and income tax return, that is sufficient. Please remember to tax the car as a taxable benefit, calculated from the gross list price of the car as a new car, if you use the 1% rule.
2. You can already reclaim the input tax in the preliminary return. Please enter the input tax amount in line 66.
3. That is correct.
4. You can depreciate the car over 3 years.

If you have any further questions, please don't hesitate to contact me.

Best regards,

Oliver Burchardt