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Purchases/depreciation of passenger car

DB
2024-10-05

Question

I am self-employed in a secondary occupation and subject to VAT.

Subject: the following entry for the purchase of a passenger car (20% professional use %)

I am entering this expense for a total amount of €42,500.00 (excl. VAT €35,123.97) as an investment in the category Passenger car.

The supplier is

Le Couter my

, a Belgian

company. The document states the invoice date as 16/10/2023 and I am booking the expenses on 01/07/2024. The depreciation amounts to 20%, spread over 5 years from 2024. Question: is this entry correct and can I recover 20% of the vAT in full via my third quarter return? Or should this amount be depreciated over 5 years as an investment?

Hi,That's absolutely right! You can reclaim the vAT immediately and write off the costs excl. VAT! Just one question: why are you entering this invoice into your accounts a year later? Because if you already had it before you started your business, I don't think you can enter this car at its purchase price, but you have to take the current market value (second-hand).

Regards, Ad.

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You really should try it out for yourself. Even if you don’t have a company number yet, you can already go ahead.

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