Advantages of light commercial vehicles

Fiscal advantages of light commercial vehicles

‘Light commercial vehicle’, a term that stands for many fiscal advantages in the car world. AT IDC Cars we know all about it and we offer you the possibility to convert your car into a light commercial vehicle.

Private individuals and self-employed people

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Have you ever calculated what your car costs you on a yearly basis as a private individual or a self-employed person?

The car truly deserves its reputation as fiscal money-spinner.

The government is the major earner. Apart from lucrative margins on fuel costs, there is also the limited tax deductibility of car expenses, car registration tax and road tax.

Fiscal advantages

To begin with, you do not pay “car registration tax”. The road tax is also very reasonable. Depending on the maximum allowed load in kg you would pay between €34.45 and €148.76.

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Furthermore, all professional costs of the light commercial vehicle are 100% deductible, whether you carry out your activities through a one-man business or via a company. This is in contrast to the deduction of automobile expenses, which are limited to 75% in a one-man business or dependent on the CO2 emission in case of a company.

Unlike a car, a light commercial vehicle qualifies for accelerated depreciation (decreasing). Any additional costs incurred at the time of your purchase can be written off in one go. For a passenger car such costs must be depreciated at the same rate as the car.

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If you run a one-man business you can also benefit from an investment deduction if you only use the vehicle for professional purposes.

As far as VAT is concerned, the 50% deduction limit does not apply to light commercial vehicles, as is the case for passenger cars.

Good to know: whether you use the car to transport goods or not is irrelevant to enjoy the tax benefits! The taxman cannot deprive you of the benefits if the activities of your business consist solely of the provision of services.

Fiscal advantages

  • No car registration tax
  • Low road tax
  • Professional costs and fuel costs 100% deductible
  • Right to investment deduction for a one-man business
  • Right to accelerated depreciation (decreasing)
  • Additional costs at the time of your purchase can be written off in one go.
  • VAT 100% deductible
  • No benefits in kind