If you use your private car for business purposes, you can deduct the VAT on maintenance and usage costs, as long as the car is used for taxable turnover. However, you cannot deduct VAT for personal use. In VAT terms, commuting is considered personal use.
Explanation of Business Use of a Private Car
With Informer, you can keep a detailed mileage log, making it easy to calculate the ratio between business and personal use. The amount of VAT you can reclaim depends on this ratio.
Calculating the Deductible Amount
Example:
If you drive 60,000 kilometers in a year, with 45,000 kilometers being business-related, and the total VAT on fuel and maintenance for that year is €945, the calculation is as follows:
€945 x 45,000/60,000 = €709 of VAT can be deducted.
If the car is also used for exempt turnover, the deductible amount must be proportionally reduced. For example, if 50% of the turnover is exempt, the deductible amount becomes €355 (50% of €709).
How to process This in Informer
To register business mileage for a private car follow the steps below:
Navigate to Advanced in the left-hand menu;
Choose Memorial;
Create the following entry:
Line 1
General ledger: 1520 - Voorbelasting
Description: Vrij invulbaar
Debet/Credit: Debet
Amount: Calculated amount
Line 2
General ledger: 655 - Privé
Description: Vrij invulbaar
Debet/Credit: Credit
Amount: Berekend bedrag (zelfde bedrag als regel 1)
Tip: Memorial entries under Prepaid VAT are automatically included in your VAT declaration, so there's no need to manually adjust your VAT filing.