Carsharing

Shared mobility, a safer bet than your own car?
As the legislation is not yet very well developed on this subject, the general regime applies: shared cars are partially deductible, same as any other car.

Are you renting a shared car for an exclusively business trip? In that case, a broader deductibility could be justified… provided that you can prove that the trip is exclusively for business reasons and that you did not take advantage of it to go shopping!

The cost of a shared car is partially deductible

Car sharing or car sharing is partially deductible, following the same principle as for “normal” car expenses. To determine the tax deductibility of a shared car, you should therefore take into account:

• the CO₂ emissions and fuel type of your shared car
• its professional use

Here is a simple example for you

You pre-book a Cambio shared car to visit a potential new client. The total cost of your reservation is € 60.00.

• Electric car: as the shared car is 100% electric, you also enjoy a tax deductibility of 100% is. In this case, you can deduct the € 60.00 in full for tax purposes.
• Hybrid car or combustion engine (diesel, petrol or LPG): if the share car is not fully electric, we apply this formula:
  • Purchased before July 1, 2023: 120%- (0.5% x [coefficient] x CO2 )
  • Purchased after July 1, 2023: 75% – (0.5% x [coefficient] x CO2 )

Suppose it is a hybrid share car (coefficient = 1) from 2021, with CO2 emissions of 50 grams per kilometer, the deductibility in this case is 95%. Thus, you may deduct € 57.00 for tax purposes.

In practice, in Accountable, you can create a car profile that corresponds to the car you use most often from your preferred service provider, and assign all your expenses to this profile. Easier to manage.

Do you stop at your grandmother’s after your company visit and drive on to the supermarket afterwards? Then the use is not 100% professional and the cost is only partially deductible. It’s up to you to make a realistic and fair assessment.

Deductible VAT for car-sharing

As with your own company car, you may only partially deduct VAT with a shared car. The maximum is 50%. You should also reduce this percentage if your trips are not exclusively professional.

What if you need to refuel or recharge?

If you travel a lot of miles with a shared car, there is a relatively high chance that you will have to stop to refuel or recharge. It’s good to know that fossil fuel you purchase for your hybrid car is never more than 50% deductible.

However, in most cases, a refueling or charging card is included with the reservation of a shared car. So you don’t have to break your head over this, because this cost is included in the total price of your reservation.

What proof do I need to deduct the car share?

If you also want to deduct part of the VAT, you will need the official invoice. You can request this from the sharing service. Make sure that your official name and VAT number are then mentioned on the invoice. Shared services often have an option for professional use. Use this and you will automatically receive a valid VAT invoice.

If you are not liable for VAT, a payment receipt will suffice.