In this case we will talk concerning chart 48 of Income Tax Regulation about Special Benefit Tax in connection to companies vehicle. Do you know, in which case you can you apply for 100% of VAT return?
If you use the car for business purposes, you can refund VAT in full amount by purchase the company vehicle and also from the expences associated with the company car, as repair, parking, petroleum etc.
Special Benefit Tax does not arise from using the car, if:
• The company does not allow the use the car for private purposes.
• The company maintains a tracks records and control the use of car. It guarantees that take place only trips related to entrepreneurship purposes.
• There is an entry in the Road Register, that car is used only for business purposes.
Important to know, when you change the type of car function from business purposes and to private purposes, even if it is one time a month:
• It is necessary to change the registration in the Road Register. If there are no entry in the Register about car function, the company have to pay Special Benefit Taxes.
• You can take only 50% of VAT to compensate the expences associated with the company car.
• If the VAT from the amount of car purchase was refund in full 100 % amount, and the change of car function was made within the first 2 years after the purchase, you need to make a correction of the VAT declaration and return to the budget 50% of the calculated VAT from the amount of car purchase.
What kind of car is dangerous for company?
Type of the car shows the category M1 or M1G.
• The car is owned by the company.
The trucks with category N1 and with a weight of up to 3,500 kg is used for business purposes by default, but could be used for private reason also.
How to calculate the tax based on a calendar month?
The amount of Special Benefit Tax depends on the car’s power and is calculated as follows:
• 1.96 euro per 1 kW of power for a car under 5 years of age
• 1.47 euro per 1 kW of power for vehicles older than 5 years
Special Benefit Tax does not arise during the time, when the vehicle record in the Road Register is temporarily suspended.
