VAT Deduction on Vehicles: An Area Where Companies Often Make Mistakes

VAT deduction related to vehicles is one of the most misunderstood areas in practice.

For certain vehicles, VAT deduction:

  • is not allowed,
  • is only partially allowed,
  • or requires proof of business use.

The most common issues arise with:

  • passenger vehicles,
  • mixed business and private use,
  • fuel and maintenance costs,
  • incomplete mileage records.

FURS frequently reviews this area during audits.

If records are insufficient:
➡️ the VAT deduction may be denied.

➡️ Practical advice: It is not enough to say a vehicle is used for business purposes — this must be properly documented.


CTA:
👉 We can review the VAT treatment of your vehicles and related expenses.