THE UTILITY VEHICLE AND THE IRS

THE UTILITY VEHICLE AND THE IRS

The utility vehicle has many tax advantages over other vehicles. We take inventory of it in this article.

First of all, it is important to know what the criteria are for the IRS to accept your vehicle’s utility qualification.

The vehicle must meet the following conditions:

  • It must be intended for the transport of goods
  • Its mass cannot exceed 3,500 kg
  • The cargo space is at least 50% of the length of the wheelbase
  • The cargo space is equipped, on its entire surface, with a fixed horizontal floor free of any attachment points for additional seats, seats or seat belts;

Be careful that the IRS only takes into consideration the findings of the technical control. Some vehicles described as utilitarian by the DIV are not used for technical control.

The tax benefits are:

  • No circulation tax to be paid
  • Lower traffic tax
  • Right to the business investment deduction
  • Business expenses deductible at 100% while limited for other vehicles
  • VAT deductible at 100% while VAT is only deductible at 50% for other vehicles
  • Advantage of any kind (ATN) based on actual private use (while the ATN is flat for other vehicles).

How do I calculate the ATN on a utility vehicle?

Unlike other vehicles, the ATN must be estimated at its true value for the private use of the beneficiary. Of course, the commercial vehicle may not be used at all for the private sector, so there is no benefit to declare.

To calculate the ATN, several methods may apply. For example, an overall percentage of private use can be taken and applied to vehicle expenses that were recorded during the fiscal year.

It can also be based on the mileage price mentioned on the “moniteur de l’automobile” website. We then multiply the private mileage by this cost price. Please note that travel from home to work is private travel in the eyes of the TAX authorities.


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