Input: Vorsteuerabzug Pkw Freiberufler
Translation: Input tax deduction for self-employed professionals' vehicles
October 11, 2010 | 30,00 EUR | answered by Matthias Wander
I will order a new car (Audi Q5) still in 2010, which will be delivered in 2011, and I will use it both privately and for business. What is the current regulation, and what do I need to consider?
Dear inquirer,
Thank you for your inquiry, which I would like to answer based on the information provided and considering your situation within the scope of an initial consultation.
I assume that you provide taxable services with your activity.
Since it is a mixed-use item, you have 3 options on how to proceed with the car:
1. Full allocation to the company assets (common practice)
The VAT separately identified in the proper invoice can be fully deducted in the reporting period in which you received the invoice.
For the non-business use (private), you must tax a non-business benefit. Either using the 1% method or a mileage log.
2. No allocation to the company assets
With this option, you would not have a VAT deduction from the purchase. On the other hand, you would not have to subject the private use to VAT.
3. Partial allocation to the company assets
In this case, the car is only partially allocated to the company assets, only to the extent that it is used for business purposes. From the purchase, you would only have a partial VAT deduction. The private use would not be subject to VAT, as in option 2.
Example:
Business use: 70%
VAT: €10,000
Deductible VAT: €7,000
The VAT company assets are not the same as the tax assets.
I hope this gives you a first overview.
Best regards,
Wander
Tax consultant
