Focus on deductible VAT on vehicles and fuel

To round off our special series on VAT we bring you a focus on deductible and recoverable VAT on vehicles and fuel, let's go! 🚗

Are you new to the business and want to understand everything there is to know about it so you can get to grips with your accounting?
Go 👉 here to discover the basics of what VAT is, 👉 here to learn how to calculate it and 👉 here to understand how to reclaim it!

Which vehicles are affected? 🚗

Passenger cars are not eligible for VAT deductibility.
This is also the case for maintenance costs related to the use of these vehicles (oil changes, tire changes, etc.).
This rule also applies to motorcycles 🏍 and bicycles 🚲.

However, whether you are buying or second-hand, it is still possible to reclaim VAT on certain types of vehicle, such as :

• vehicles used for professional passenger transport (cabs, public transport, sanitary vehicles, etc.).
• vehicles purchased for resale
• vehicles intended for rental
• Industrial vehicles
• vehicles used for driving practice (driving schools)
• commercial vehicles (trucks, vans, etc.)
   

👀 Please note: It is possible to convert a passenger car into a commercial vehicle by removing the rear seats. In which case a declaration amending the vehicle registration document is required.

What steps do I need to take? 🤑

To reclaim the VAT you paid if you bought one of the vehicles listed above, simply follow the steps below.

Contact your tax authorities and provide them with :

• ✅ The invoice for the vehicle purchase, together with all the necessary supporting documents (including the vehicle registration document).
  The document must include the price excluding VAT, the VAT rate and the amount of VAT invoiced.
• ✅ The category of business vehicle purchased.
   

👀 Please note: Concerning vehicles acquired for resale, you have a maximum of 5 years 📆 to effect the resale of the vehicles, so they must have been resold before the end of the fourth year following that of the initial purchase.

And what about fuel? ⛽️

The rate of VAT recovery on fuel costs depends on the type of vehicle and the type of fuel you use. Here's a summary:

👀 Please note: From 2022, the rate of VAT recovery on fuel costs for commercial vehicles - only - will be 100%! 💥