What is the difference between a private car and a company car/commercial vehicle?

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A car will be considered a company vehicle/commercial vehicle if it is exclusively used for business travel. In such cases, you must not have used the vehicle for home visits, travel between your home and workplace or other private journeys.

Heavy goods vehicles, buses, etc. 
According to established practice, the following vehicles will normally be considered a commercial vehicle without any requirement for further documentation of distance travelled when they are used for commercial purposes:

  • heavy goods vehicles with a total weight of 7500 kg or more, and
  • buses with more than 15 passenger seats.

This general rule applies even if the vehicles are occasionally used for private journeys, e.g. travel between your home and your fixed place of work (work-related travel).

Other vehicles

Many other vehicles are also considered to be commercial vehicles even if they are used for private travel. In such cases, at least one of the following conditions must be met:

  • The vehicle is used for business travel amounting to at least 6,000km per year. A period of three years should be used as a basis. 
  • The majority of the travel in the vehicle consists of business travel. 
  • The vehicle is constructed or fitted out in a manner that makes the vehicle both unsuitable and unintended for private use. In such a case, you must also not have used the vehicle for private journeys other than between your home and your fixed place of work and/or home visits. 
  • The vehicle is registered for nine or more passengers and is used to transport employees based on a workplace scheme. In such cases, you must not have used the vehicle for other private travel.

If the vehicle does not fulfil any of the above conditions, you should consider the vehicle a private car. Read more about how you can claim deductions for the use of a private car for business travel.

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