The purchase of a utility vehicle constitutes an investment expense , the corresponding depreciation of which can be deducted from the taxable result in full . No penalty must be paid for the purchase of a commercial vehicle.
Unlike passenger vehicles, the deductibility of depreciation is therefore not capped at a calculation basis equal to 18,300 euros or 9,900 euros depending on the CO2 emission rate, and no ecological penalty is due.
When the company is liable for VAT, the tax on the purchase of a commercial vehicle can be fully recovered. Finally, a commercial vehicle does not come within the scope of the TVS (Tax on Company Vehicles). Using the taxfyle’s tax calculator is important here.
Taxation related to the rental or leasing of a commercial vehicle
If the company leases or leases the utility vehicle, the rents paid are fully deductible from taxable income.
Unlike passenger vehicles, the deductibility of rent is therefore not capped in relation to the share of the price of the vehicle which does not exceed 18,300 euros or 9,900 euros depending on the CO2 emission rate.
As on the occasion of a purchase, the hiring or leasing of a commercial vehicle does not cause any TVS to be paid.
Taxation of fuel and maintenance expenses
Fuel expenses are deductible from taxable profit. Then, the possibility of recovering VAT depends on the type of fuel consumed by the commercial vehicle. Here are the applicable principles:
Gasoline: VAT cannot be reclaimed. From 1st January 2017, a progressive schedule of 5 years of deductibility of VAT on petrol is in place. For more information: VAT on fuel expenses.
- Diesel: VAT can be fully recovered,
- Super ethanol E 85: VAT can be fully recovered,
- GPL: VAT can be fully recovered,
- Propane and liquefied butane: VAT can be fully recovered,
- Compressed natural gas: VAT can be fully recovered.
The company can recover VAT on maintenance expenses relating to commercial vehicles and these are deductible from taxable profit.
This file provides you with a summary of the tax declarations to be established in terms of declaration of results, profits and VAT, depending on the tax regime to which your company falls.
Business tax returns
Summary table of the applicable tax regime
Here are three summary tables which specify the applicable tax regime in terms of profits and VAT, depending on the activity of the company and the amount of its annual turnover. The thresholds indicated above apply for 2020, 2021 and 2022.