Motor vehicle tax, accident costs & Co.: Which car-related costs can be deducted?

Created: 06/09/2022, 06:45

By: Franziska Kaindl

A car makes everyday life easier in many ways, but “luxury” also comes with costs.

You can deduct some of these in your tax return.

Many people rely on a car to get to work or to go to the supermarket.

However, a car is not only expensive to buy: fuel costs, vehicle tax, accident insurance and much more follow to keep the vehicle in good shape.

In some ways, the state offers tax breaks for motorists.

You can find out when and for what costs this applies in the overview.

Can the vehicle tax be deducted?

Every vehicle owner has to pay vehicle tax once a year.

The amount depends on the vehicle model, the power and the type of drive.

Whether the costs may be declared in the tax return depends on whether you use the car privately or for business.

You have the following options:

• Private

  car : If the vehicle is not used to earn a living and is only used for leisure, the state classifies it as private pleasure.

  You can therefore not deduct the vehicle tax.

  There is an exception for trips to work: For this you can state the so-called “distance allowance” in the income-related expenses.

  It is 30 cents per kilometer travelled.

  In this way, costs that arise proportionally for the car are covered (e.g. insurance, repairs and vehicle tax).

• Company vehicle

  : Are you self-employed or an entrepreneur and use a company vehicle?

  Then you can state the vehicle tax in full as an expense in the operating expenses.

  It is important that the vehicle is only used for business trips.

  If the car is also used in leisure time, a logbook must show the relationship between private and professional use.

Save money on the car: Which car-related costs can be deducted?

© Imago

Specify car insurance in the tax

In general, car insurance costs are tax deductible.

However, there are differences: As a permanent employee, you can only deduct motor vehicle liability insurance as part of the special expenses as "other pension expenses".

If you have also taken out partial or fully comprehensive insurance, only the liability portion is stated.

The self-employed, on the other hand, may also claim the contributions from the comprehensive insurance.

It is noted in the appendix EÜR with the operating expenses.

In any case, it is important for a statement in the tax return that you are the policyholder and the vehicle owner.

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Can accident costs and repairs be claimed against tax?

Car accidents are very common in dense fog or black ice.

Repair costs are recognized by the tax office as income-related expenses if you have been on a business-related trip, according to the

- for example on the way to or from work or on business trips.

"The rule of thumb is: If the journey can be deducted from the tax, this also applies to the accident costs," explains Gudrun Steinbach from der Lohi.

Even if the vehicle is damaged in the parking lot during working hours, the repair costs may be declared with the tax.

And even towing costs and costs for lawyers and doctors can be claimed for tax purposes if they become necessary as a result of an accident.