Fuel costs: terms, scope and declaration

The fuel charge schedule is an alternative to the mileage scale. It is used to determine business travel expenses for mixed-use vehicles, that is, for both business and personal travel. What is the range of fuel costs in 2024? How to calculate them? When should they be taxed? Reply.

Main video: Fuel costs: terms, scale and declarations

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– Calculation of fuel costs

What are the fuel costs?

Fuel costs correspond to the costs incurred by the vehicle owner for the proportion of kilometers traveled for business purposes.

They take into account:

  • exact number of kilometers driven,
  • fiscal strength of the vehicle,
  • type of fuel used (diesel, gasoline, LPG).

Unlike the mileage scale, the scale used does not take into account the total annual number of kilometers traveled by the vehicle.

The awarded compensation only concerns the fuel consumed and therefore does not include any part of the vehicle’s amortization and its maintenance.

What are the differences between the fuel cost scale and the mileage cost scale?

The difference between the fuel cost scale and the mileage scale lies in the assessment of compensated costs.

The tachometer compensates for all vehicle costs:

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Rather, the cost of fuel only compensates for the purchase of fuel.

Also read: Tax optimization: operation and systems

Which experts can decide on the scale of fuel charges?

Types of professionals

Different types of professionals can, if they meet the conditions, opt for this scale. Specifically:

  • employees,
  • non-commercial income holders,
  • holders of agricultural income covered by the simplified regime,
  • managers of individual BIC companies who opted for super-simplified accounting.

Rental car owners

Only the person who personally owns the vehicle and holds the registration certificate can opt for mileage.

Holders of a leased vehicle (long-term lease, social lease or LOA) who do not hold a technical license will therefore not be able to opt for the mileage scale and will have to use the fuel cost scale.

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Also read: How to reduce taxes?

What is the benefit of choosing to report fuel costs?

The speedometer has three parts related to the distance traveled per year. Unlike the scale of fuel costs, which applies uniformly to all private cars with mixed use (professional and private), regardless of professional kilometers driven per year.

While the mileage scale compensates for all costs incurred, the fuel cost scale allows for an over-deduction of all other costs incurred (depreciation, maintenance and repairs, tyres, insurance).

Which can be advantageous for the taxpayer in certain situations.

How to calculate fuel costs for taxes?

Let’s imagine a private doctor who drives to his patients with a 5 taxable HP diesel car and drives 20,000 km per year to see his patients.

He has two options for deducting travel expenses.

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Mileage scale option

The calculation of his deduction will be as follows:

  • Vehicle with 5 HP and more, for 20,000 km = d × 0.357 + EUR 1,395;

So 20,000 × 0.357 = 7,140 + 1,395 EUR = 8,535 EUR.

Fuel price option

His deduction is calculated as follows:

  • 5 to 7 CV and more Diesel → €0.122/km

Or €0.122 X 20,000 km = €2,440 for fuel only.

In addition, however, he will be able to deduct all other costs related to his vehicle:

  • Purchase and registration costs (depreciated over five years);
  • Maintenance costs (drainage, repairs, tires, etc.);
  • Insurance costs

All these costs are deductible after justification if the professional owns a vehicle bought new for 25,000 euros including tax, linear depreciation allows him to spend 20% of this amount every year (the doctor is not a VAT payer).

  • Or amortization of €5,000.
  • His insurance premium is 1,200 euros
  • The maintenance of your car (sewage – service – tires) is €800

This is a total eligible cost of €7,000, which is added to the total of €2,440 in fuel costs when using the scale. Or €9,440 compared to €8,535 in mileage.

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In this situation, the possibility of fuel costs from a professional allows him to save 905 euros. The higher the non-fuel costs, the more advantageous the option will be.

Also read: Tax dates 2024: tax calendar of upcoming payments

What is the 2023 fuel cost BIC scale applicable to 2024 income tax?

Scale updated annually

The fuel cost scale, also called the “BIC fuel cost scale” (referring to the Industrial and Business Profits Tax Scheme), is updated annually by the administration to take into account the price of fuel.

The 2023 scale, valid in 2024, was published in BOFIP on 6 March 2024. It highlights the rising price of petrol, LPG and two-wheelers, while it falls by 3% for diesel vehicles.

Scale of fuel costs per km driven in 2023 for a passenger vehicle

The scale used for passenger vehicles is as follows:

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Scale of fuel costs per km in 2023 for motorized two-wheelers

The scale used for motorized two-wheelers is as follows:

How to declare your fuel costs?

Employees who opt for the actual expenses regime (as opposed to the 10% flat rate deduction) must provide proof of professional mileage.

The same applies to taxpayers subject to the simplified real income regime of the BIC, BNC and BA types who use the fuel cost scale.

Therefore, the taxpayer who wants to use this method of deduction must keep a detailed account of trips made on a professional basis with the destination, reason and kilometers traveled.

No documents need to be attached to the tax return. On the other hand, the taxpayer must keep them for at least three years.

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