Deduction for the use of your own car for business purposes when you drive 6,000 kilometres or more
If you drive your car at least 6,000 kilometres for business purposes, or if driving for business purposes makes up at least half of the total use, the car is considered a commercial vehicle.
If this is the case, you must generally include the vehicle in the enterprise’s accounts, and you can claim a deduction for all expenses linked to the upkeep of the vehicle.
All expenses for the upkeep of the vehicle are deductible, including depreciation of the purchase price.
Please note that this means that the private use of the car in these circumstances is a taxable benefit.
Private use is a taxable benefit
If you use the car for personal purposes, this is considered a taxable benefit, and you must deduct the value of this from the expenses (reversal). The private benefit is generally assessed according to a standard rule. However, the reversed amount must never exceed 75 percent of the calculated total costs of upkeep of the vehicle.
How to enter this in your tax return
The method for entering the deduction for vehicle upkeep and reversing the private use benefit, differs depending on how you submit your tax return.
Follow the directions in your accounting system. Contact the system provider if you have any questions.
Fill in information about a commercial vehicle in the business information in your tax return:
- Costs for the upkeep of the vehicle, such as fuel, insurance and taxes must be entered in the card “Costs for vehicles used in business activity”, under items 7000–7040. You’ll find the card under the topic “Expenses”.
- Complete the card “Commercial vehicles” under the topic "Fixed assets". The reversal of the benefit from private use will be automatically calculated based on the provided information.
- Complete the card “Depreciation of fixed assets” under the topic “Fixed assets” to deduct your purchase costs (depreciation). Select balance group d.
Watch our film
We explain how you claim a deduction and ensure that your tax return is correct: