Insights
TAX & BUSINESS
Mileage Allowance and Logbook
The tax treatment of motor vehicles in the corporate sector depends largely on the extent of business use and the proper documentation of journeys. Where private use predominates, clear rules on mileage allowance must be observed. Where business use predominates, the private portion must be demonstrated.
If a vehicle is used by the entrepreneur both privately and for business and the business-use share is less than 50%, the motor vehicle is to be allocated to private assets. In this case, business journeys can be claimed via mileage allowance. The official mileage allowance is an allowable flat-rate compensation for all costs incurred by using a private vehicle on a business trip. A prerequisite is, among other things, appropriate evidence of the kilometres driven, which is usually provided by a logbook.
Mileage allowance: amount and tax limitation
Since 1 January 2025, the mileage allowance is EUR 0.50 per business kilometre. Until 31 December 2024 the rate was EUR 0.42 per kilometre. The mileage allowance covers all expenses related to the acquisition and operation of the motor vehicle. This includes, in particular, depreciation, fuel and oil costs, service and repair costs incurred in normal operation, expenses for additional equipment, taxes and fees, insurance premiums, membership fees of motorists' clubs and financing costs. The official mileage allowance is tax‑deductible for a maximum of 30,000 km. If business journeys exceed 30,000 km (but still represent less than 50% of the total annual kilometre total), either the mileage allowance for 30,000 km or the actual costs proportionate to the business use may be applied.
Evidence by logbook
Evidence of the business use of a vehicle must be provided by a logbook or other suitable records. These records must enable a reliable assessment and must contain, at a minimum, the information specified in the mileage allowance regulation. This includes the date of the journey, the odometer reading, the number of business kilometres travelled that day, as well as the start and destination points. In addition, the purpose of each business journey must be recorded. An electronic logbook is permissible provided that the entries are ensured to be unalterable. Logbooks kept in Excel or comparable programmes are considered inadmissible. Keeping a logbook is also possible when the vehicle used is owned by a third party.
Allocation of the vehicle to business assets
Where business use predominates, the vehicle’s costs are to be taxed at the actual expense amount and reduced by the corresponding private share. Proof of the actual use is usually required via a logbook.
In summary, the tax claim for travel costs requires careful documentation of business use. In particular, a properly maintained logbook plays a central role in either claiming the mileage allowance or demonstrating the private share.
Mileage allowance: amount and tax limitation
Since 1 January 2025, the mileage allowance is EUR 0.50 per business kilometre. Until 31 December 2024 the rate was EUR 0.42 per kilometre. The mileage allowance covers all expenses related to the acquisition and operation of the motor vehicle. This includes, in particular, depreciation, fuel and oil costs, service and repair costs incurred in normal operation, expenses for additional equipment, taxes and fees, insurance premiums, membership fees of motorists' clubs and financing costs. The official mileage allowance is tax‑deductible for a maximum of 30,000 km. If business journeys exceed 30,000 km (but still represent less than 50% of the total annual kilometre total), either the mileage allowance for 30,000 km or the actual costs proportionate to the business use may be applied.
Evidence by logbook
Evidence of the business use of a vehicle must be provided by a logbook or other suitable records. These records must enable a reliable assessment and must contain, at a minimum, the information specified in the mileage allowance regulation. This includes the date of the journey, the odometer reading, the number of business kilometres travelled that day, as well as the start and destination points. In addition, the purpose of each business journey must be recorded. An electronic logbook is permissible provided that the entries are ensured to be unalterable. Logbooks kept in Excel or comparable programmes are considered inadmissible. Keeping a logbook is also possible when the vehicle used is owned by a third party.
Allocation of the vehicle to business assets
Where business use predominates, the vehicle’s costs are to be taxed at the actual expense amount and reduced by the corresponding private share. Proof of the actual use is usually required via a logbook.
In summary, the tax claim for travel costs requires careful documentation of business use. In particular, a properly maintained logbook plays a central role in either claiming the mileage allowance or demonstrating the private share.