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Car cost private car in the sole proprietorship / ZZP company, what exactly is the VAT?

First of all the basics: 

The tax allowance of € 0.19 per kilometer includes all car costs, tolls, parking fees and VAT. Unfortunately, most entrepreneurs will have to contribute privately for every business driven kilometer.

The VAT on maintenance, repair and use costs may be deducted in the same proportion as business driven kilometers to the total kilometers driven. Is the ratio not to be deduced from your records? In that case, you may deduct the VAT on usage and maintenance for 75%.

ATTENTION! On the basis of maintenance notes, it is reasonable to deduce what is being driven annually. The 75% rule can therefore be corrected by the tax authorities afterwards.

The VAT can only be reclaimed if the invoice is in the name of yourself or your private company. If you pay cash in cash and you only settle for the receipt, you do not have a valid VAT invoice and you can not set off the VAT. If you fill up with a credit card, fuel card or debit card in the name of the business, deduction of VAT is approved because the account number and the name of the account clearly show that the fuel is being refueled commercially.

Calculation example: 

Total kilometers driven: 20,000

Business driven kilometers: 10,000

Default journal entry: 

Mileage allowance private car € 1,900.00 (cost)
@ Capital account € 1,900.00

From the invoices and receipts the following are paid to VAT:

Bran costs: € 3,500 of which € 607,43 VAT

Maintenance costs: € 1,500 of which € 260,33 VAT

Parking fees: € 100 of which € 17.35 VAT


Total VAT car costs € 885.11 VAT

Business / Total Ratio = 50% VAT to be settled on the declaration € 442.55

By settling the VAT, the journal entry becomes as follows: 

Mileage allowance private car € 1,457.45 (costs)

VAT to be settled € 442.55
@ Capital account € 1,900.00

ATTENTION! By settling the VAT, the compensation always remains € 0.19 per kilometer and the costs are reduced by the VAT amount. You can not deduct the VAT as a tax and also add it as (billable) costs.

What is the tax difference now? 

The advantage is + – 48% to 50% of the settled VAT on car costs.

So in the example above € 215 to € 230 per year.

For that money a VAT administration car cost must be kept, including all receipts.

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