Advisory: Vehicle Benefit-in-Kind Tax

The tax treatment of company vehicles depends on how you document them

Construction companies and fleet operators in Austria and Germany face the same fundamental question: when does a journey in a company van count as a business trip, and when does it trigger a taxable benefit in kind? The answer matters, and the documentation is what determines it.

Austria: the fiscal lorry model

In Austria, journeys from home to a construction site are classified as business trips. Travel to the company premises is treated as private use, unless the vehicle qualifies as a “fiscal lorry” (steuerlicher Kastenwagen). That classification unlocks significant tax advantages:

• Full input tax deduction on the vehicle purchase
• Shorter depreciation period
• Favourable asset treatment

For low-mileage private use, employees may pay a small monthly amount, covering up to 250 km of private driving, which preserves the vehicle’s business classification while giving drivers the flexibility they need.

Germany: the 1% rule versus the logbook method

In Germany, home-to-site travel is generally tax-free as a business journey. Travel to the company’s business premises or purely private journeys trigger benefit-in-kind taxation. Two methods exist for calculating it:

• 1% rule: A flat monthly rate of 1% of the vehicle’s gross list price, plus 0.03% per kilometre to the business premises. Simple, but expensive when private use is genuinely low.
• Logbook method: Actual private versus business use is documented and taxed accordingly. Significantly more advantageous when private mileage is minimal.

The logbook method is only valid if documentation is complete, contemporaneous, and forgery-proof. German tax authorities are increasingly scrutinising logbook compliance.

The electronic logbook that records itself

Commander’s Digital Logbook module removes the manual burden entirely. The system records every journey automatically, including date, start and end points, purpose, and distance, in real time. Drivers classify trips as business or private via the R-DRIVE app or a vehicle-mounted multiswitch. Private trips remain private: no one in the organisation sees the route or location data for marked private journeys.

At tax time, the logbook is ready: downloadable reports in the format required by Austrian and German tax authorities, with a complete audit trail demonstrating compliance with § 17 of the Working Hours Act (Austria) and the relevant provisions of German tax law.

Austria: legal basis

The legal obligation for logbooks in Austria is grounded in § 17 of the Working Hours Act (Federal Law Gazette No. 461/1969). Required entries include: date, departure and destination points, trip purpose, and mileage. Tax office controls on logbook accuracy have increased significantly in recent years.

Germany: legal basis

German requirements are set out in § 31a StVZO, § 24 StVG, §§ 31a and 69a StVZO, and § 190 BKatV. Vehicle owners must be able to produce the logbook on request and retain records for at least six months after expiry. Violations carry fines of up to €200 per case for improper maintenance or failure to produce records.

An electronic logbook eliminates the practical risks: no lost records, no illegible handwriting, no disputes over driver assignment.