Using a commercial vehicle for both commercial and private purposes

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If you use a company vehicle for both commercial and private purposes, your sole proprietorship can deduct all expenses attributable to use of the vehicle, including depreciation of the vehicle's cost price, but you will also be taxed for the benefit derived from using the vehicle privately.

You must submit the form entitled Bruk av bil (Use of car - in Norwegian only) (RF-1125) as an attachment to the tax return. For more information, see the guidance on completing the form. 

Depreciation
Unless you lease a vehicle, you must also complete the formAvskrivning (Depreciation - in Norwegian only) (RF-1084).

All expenses attributable to upkeep of the vehicle must be entered in income statement 1(RF-1175) or in Business Tax Return, items 7000-7040.

How to claim a deduction for costs for a commercial vehicle.

How to reverse certain vehicle expenses if you also use the company vehicle privately.

For more information, see the guidance for the items in the tax return.

Benefit taxation
The reversal of private use is entered under items 7099 and 2075 of the income statement. This means that your income will increase by the reversed amount.

However, the amount reversed must never exceed 75 percent of the calculated total costs of upkeep of the vehicle (running expenses + estimated depreciation in value or, if applicable, rental expense).

Reversal is a standard reduction in expenses (increase in income) because you are not entitled to any deduction for use of the vehicle that is considered to be private.

See the example calculation of private benefit attributable to the use of a vehicle.

Relevant forms

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