How to claim a deduction for company vehicle costs

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You must archive invoices for fuel and other items that you purchase for your vehicles and post these vouchers at the same time as you post your other business related transactions in the course of the year. Remember that you obliged to submit RF-1125 Bruk av bil (Use of vehicle) with your tax return and income statement.

You should therefore make sure that you have enough accounts in your chart of accounts so that you can specify vehicle costs in the form. If you have a number of company vehicles, then you should set this up so you can track the costs for each vehicle. You will also need to record the following to fill in the form 

  • Odometer reading on 1 December of the income year  
  • Odometer reading on 31 December of the income year  
  • How many kilometres the car has been used for business related use in the year 

See below for exemptions from the obligation to submit form RF-1125 for a company vehicle.

If you own a company vehicle, then you can clam a deduction for depreciation by including the vehicle in the summary balance. You must also submit RF-1084 Avskriving (Depreciation) with your tax return. You include the company vehicle in summary balance c or d on this form. How to calculate the deduction you transfer over to RF-1175 Income Statement 1, post 6000 Depreciation is shown on the form. You will therefore be able to claim a deduction for depreciation and for your other vehicle expenses.

Leased vehicles should not be included in the summary balance. You should instead post the lease payments as debt in the income year.

If a vehicle has also been used for private purposes, then you should calculate the amount by which the deduction for running expenses is reduced in your income statement. See below for more information on how you calculate this amount. 

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