What is included in fuel costs?
Fuel costs are all expenses you have incurred for refuelling petrol, diesel or charging an electric car, van or lorry that you use for your professional activity. These costs are necessary for your professional activity.
Deductibility?
The extent to which you can deduct fuel costs depends on the deductibility of your means of transport. For example, if it is a light goods vehicle that you use 100% for professional purposes, the fuel will also be 100% deductible.
If it is an electric car, the charging costs are also 100% deductible, depending on the time of purchases. For a hybrid, diesel or petrol car, you will have to calculate the deductibility according to the so-called āgram formulaā.
The car and fuel costs are then deductible according to the next formula:
120% – (0.5% x coefficient x amount of grams of CO2 per km)
The coefficient amounts to 0.95 for a petrol or hybrid engine and 1 for a diesel engine. The deduction percentage is at least 50%, unless the CO2 emissions are greater than or equal to 200g per km. In that case, the deduction percentage will only be 40%.
If the vehicle is used for both private and business purposes, you will have to reduce this percentage, as only your business kilometres are eligible.
How to treat fuel costs for light goods vehicles as professional expenses?
- Keep all invoices, receipts and loading certificates: Collect all proof of fuel costs and keep them in a safe place. This is crucial for accounting and tax returns. Make sure you can clearly account for every expense with an invoice, receipt or loading certificate.
- Calculate the deductible percentage: Determine whether you can deduct the costs in full or in part.
- Register the expenses in your accounting system: Record the fuel costs in your accounting system under the appropriate category. This makes it easier to deduct these costs on your tax return. Dexxter offers a specifically created cost category for light cargo costs.
