If you use a car for your business, you can deduct it as a business expense. This article covers what you can deduct, how much, and how to add your vehicle in Accountable.
Please note that this article provides general guidance only. Tax rules may vary depending on your individual situation. When in doubt, ask your Tax Coach.
What can I deduct?
You can deduct the following car and car-related expenses:
Leasing
Insurance
Road and registration taxes
Fuel
Accessories
Maintenance and repair costs
Car wash
Parking
How much can I deduct?
You can deduct your car expenses for both VAT and income tax.
For VAT, typically 35% is deductible as a flat rate (100% for utility vehicles, or if you are a professional driver).
For income tax, the amount depends on the CO2 emissions of your vehicle, calculated using the following formula: 120% - (0.5% x coefficient x CO2/km)
You will find the CO2/km figure in your vehicle documents. The coefficient is as follows:
Diesel and hybrid variants: 1
Natural gas (below 11 fiscal horsepower): 0.90
Gasoline: 0.95
Electric vehicles: how to choose your next car
How do I add my car model in Accountable?
The deductibility of your car expenses depends directly on the type of car you drive. To calculate it correctly, Accountable needs to know which vehicle you use.
Open your car expenses for the year you want to file your income tax return and add your vehicle, as shown in the screencast below.
Key takeaways
Car and car-related expenses (leasing, fuel, insurance, parking, and more) are deductible as business expenses.
For VAT, a flat rate of 35% applies in most cases (100% for utility vehicles or professional drivers).
For income tax, the deductible amount is based on your vehicle's CO2 emissions using the formula: 120% - (0.5% x coefficient x CO2/km).
To get the correct calculation in Accountable, add your vehicle model to your car expenses for the relevant tax year.
Need help? Chat with us or email support@accountable.eu, we're happy to help.