📍 Car

Reclaiming VAT on car expenses 🚗 depends on your business use of the car (from 35% to a maximum of 50%). Without justification, the tax authorities will consider 35% recovery. If you justify your choice, this percentage could rise to 50%.

How is business use defined for VAT purposes ? The VAT authorities have set certain assumptions for estimating your private mileage: 200 days for your home-work journeys (considered private) + 6,000 private kilometers per year.

For example, you travel 25,000 km/year, and the distance between your home and your workplace is 20 km. You drive 8,000 km home-work per year (200 days x 20 km x 2 return journeys) + 6,000 km = 14,000 private km. This corresponds to 56% of your total km, i.e. professional use of 44% (100% - 56%).

💡 The calculation method for the VAT recovery % is different from the calculation for the deductibility %. Remember that VAT recovery ranges from 35% to 50% and that BILLY will help you with the calculation.