Limited deductibility depending on fuel and CO² rate

Car expenses 🚗 mainly include the recurring cost of renting or depreciating your car (depending on whether you choose to buy or rent), as well as all related costs: insurance, road tax, repairs and maintenance, breakdown assistance, tires, roadworthiness tests, fuel, tolls, parking, recharging points, electricity (electric cars)...

Car expenses are deductible to a limited extent. It varies from 40% (if CO² emissions > 200g/km) to 100% in the case of an electric car, and invariably applies to the recurring cost or all the related expenses listed above. Only the interest on the loan in the case of financing is automatically 100% deductible (up to the amount of professional use, of course). VAT can be reclaimed at between 35% and 50% (depending on business use, see details here).

Please note that, in addition to limited deductibility linked to CO² and fuel type, you should not forget :

I'm a self-employed individual and my vehicle is a diesel with CO²emissions of 134g/km. What can I deduct? Depending on the specifics of my vehicle, the deductibility of the car and related expenses is 53%. However, you also use your car for private purposes. So you need to take into account a business share. Let's say it's 75%. If you pay a monthly rental of €500 for your car, the deductibility will be calculated as follows: €500 x 53% x 75% = €199.

💡 Aim for 100% deductibility by opting for electric cars, bicycles and public transport 💯.