the authorities allow three ways of determining the share of actual business use

The 3 methods

To minimise the extra administrative workload for companies, the authorities have introduced a flat-rate system for the vehicles which a company provides free of charge to a manager, director or member of staff.

In practice, there are three different ways of determining the actual business use:

Method 1: Recording the mileage, thus monitoring each vehicle individually

The first method involves coding all journeys, either manually (e.g. logbook, software) or automatically (e.g. GPS system). That requires dedicated administrative procedures and monitoring of daily business travel: date of journey, starting address, finishing address, distance travelled and total daily mileage. In addition, the mileage at the beginning and end of the period (normally, a calendar year) has to be recorded. This method must be applied “to each of the company’s means of transport”.
The VAT deduction percentage is subject to a ceiling of 50%.

fleche The percentage of business use will be determined from a complete logbook

Method 2: Lump-sum calculation per company car

If the company does not want to set up dedicated administrative procedures but wants to take private use of the car into account, Method 2 can help by calculating the percentage of private use as follows:

%Private = Distance home/work (in km) x 2 x 200 days + 6,000 (private mileage)
Total mileage

% Business = 100% Private

x2 (round trip)
200 is the fixed number of working days per year
6,000 is a notional private mileage.


fleche The VAT deduction percentage is subject to a ceiling of 50%.


Method 3: Standard method, applicable to the fleet

The third method involves applying a standard deduction of 35% of the VAT on company cars to the whole fleet. This method cannot be combined with the above two methods. It must be applied to the whole fleet (the minimum requirement is 4 means of transport) for a period of at least three years.

fleche Business percentage = 35%


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