Vehicles & mileage

Arvello covers two situations, both under Expenses → Vehicles & Mileage:

• Someone drives their own car for work. The company pays them per kilometre, tax-free up to the limits, based on a trip log.
• The company has its own car or van. Its VAT is restricted, and allowing private use of it is a monthly fringe benefit.

Motor vehicle tax and car leasing are covered separately.

Paying mileage for a personal car

The company can pay an employee or a board member for using their own car on work trips (Income Tax Act § 13 (3) 2). It's tax-free up to €0.50 per km and €550 a month for each employer, as long as there's a trip log. Before 2025 the limits were €0.30 and €335.

Some rules to know:

• Only employees and board members qualify. A shareholder who isn't on the board, or someone on a services contract, can't be paid tax-free mileage. You can reimburse their documented costs instead.
• The rate covers everything. Fuel, insurance and repairs are included. Paying those on top is a fringe benefit. Parking paid on a work trip can be reimbursed separately, with the receipt, as an ordinary expense.
• Driving between home and work isn't a work trip, except in narrow cases (no reasonable public transport, or living 50+ km away).
• Without a trip log, the whole payment is salary, with income tax and social tax. Arvello always works from the log.

Above the limits

You can pay more than €0.50 per km or €550 a month. The part above is a fringe benefit:

• A rate above €0.50: everything above €0.50 is taxable for every kilometre, even if the month stays under €550. For example, 744 km at €0.55 makes €37.20 taxable.
• More than €550 in a month: the part above €550 is taxable. For example, 1,500 km at €0.45 is €675, so €125 is taxable.

The taxable part goes on TSD Annex 4, code 4030, in the month you pay it, with income tax (22/78) and social tax (33%). Arvello prepares this on the TSD for that month.

INF 14 by 1 February

Every year, the company declares on INF 14 how much personal-car compensation it paid to each person in the previous year, the taxable part included. The INF 14 card on the Vehicles & Mileage page lists those totals per person, by the year the money was paid. Enter them on INF 14 in e-MTA.

Company cars and vans

Register a company vehicle with Add vehicle and choose Company-owned, Company-leased or Company-rented. For a car, also add its engine power (kW) and first registration date: the fringe benefit depends on both. When the company sells or returns the vehicle, fill in Company has it until rather than deleting it: once a VAT return or TSD for a month the company had it has gone to EMTA, the vehicle supports that return and can't be deleted.

Fringe benefit

If staff are allowed to use a company car privately, the company pays tax on a monthly fringe benefit (Income Tax Act § 48 (8)):

• €1.96 per kW a month, or €1.47 per kW for a car over five years old on the month's last day;
• for a hybrid, the combustion engine's kW counts.

It's whether private use is allowed that counts, not whether anyone drove privately. The benefit goes on TSD Annex 4, code 4040, every month, with income tax and social tax. For example, a new 190 kW car is €372.40 a month, which costs €262.60 in tax.

A car counts as allowing private use unless you add a Business use only period on its page. That needs the business-only mark in the Transpordiamet register. In a month the car's registration is suspended there's no benefit: add a Registration suspended period. When a period stops applying, use End and give its last day, so the days it did apply stay on record. A period that covers a month whose VAT return or TSD has gone to EMTA can't be deleted: those returns were worked out from it.

A van is the other way round: private use isn't allowed unless you add a Private use allowed period. It's then priced by kW in the same way. Other vehicles (a motorcycle, a truck over 3,500 kg) aren't priced by Arvello: if you allow private use of one, declare it on Annex 4 code 4050 at its market rent in e-MTA.

The car's page shows the benefit month by month.

VAT on the car and its costs

For a company passenger car, only 50% of the VAT on buying, leasing or renting it, and on fuel, servicing, repairs and parking for it, can be deducted (VAT Act § 30 (3)). The full VAT can be deducted only while the car is used only for business (§ 30 (4) 5), is used mainly for paid passenger transport or driving tuition (§ 30 (4) 3–4), or was bought for resale or renting out (§ 30 (4) 1–2). Add the matching period on the car's page. When the full deduction ends, the 50% limit applies for at least a year. A car for resale or renting out isn't on the VAT return's car lines 5.3 and 5.4; its VAT is on line 5 only. These periods don't change the fringe benefit: only Business use only does. The 50% limit starts on the first day of the month a full deduction ends, so that month's earlier purchases are limited too. Two things the VAT return's review checklist warns about but Arvello doesn't put on the return yet: if full-deduction use that began when you got the car ends within two years (and you didn't sell it), the VAT deducted on buying it must be cut to 50% on line 10 (§ 30 (7)); and private use of a van, or of a taxi or driving-school car, is taxable self-supply at its fringe-benefit price (§ 12 (7¹)). Add both in e-MTA. Vans have no such limit.

When you book a purchase, choose the vehicle on the line. Arvello sets the business-use share to 50% for a car no full-deduction period covers and refuses more than the law allows. It fills in KMD lines 5.3 and 5.4 on your VAT return: the VAT deducted for your cars, and the number of cars the company held in the month, including any with no bill that month. Only an M1 of up to 3,500 kg gross mass counts as a car for VAT. For a heavier one, tick Gross mass over 3,500 kg on the vehicle: its VAT then has no 50% limit, and it stays off lines 5.3 and 5.4. See Purchase invoices.