Car and business
Compare the fixed mileage deduction with actual costs and a possible taxable benefit.
In 2026 you may deduct €0.25 per business kilometre. Fuel, maintenance and insurance are then not separately deducted for income tax.
Actual costs may reduce profit, but private use can create a taxable benefit. Model both options before an expensive purchase.
Car and business
Income tax and VAT can treat the same vehicle differently. Assess ownership, expenses, private mileage and VAT recovery separately.
For a private vehicle, record €0.25 per business kilometre as an expense in 2026. For income tax, this covers running costs, so fuel, insurance and parking are not deducted again.
You need a reliable mileage log. The deduction reduces profit; it is not a cash reimbursement from the Tax Administration.
Actual costs may enter the business, while private use can create a taxable benefit. Anyone claiming no taxable benefit because private travel is at most 500 kilometres must be able to prove that record.
VAT treatment can differ from income tax. For a margin car, private purchase, lease or import, establish what VAT is genuinely recoverable.