The use of flatbed and panel vans by employees in the construction industry often raises questions about tax treatment and the reimbursement of travel expenses. A precise distinction between business and private journeys is crucial here. In this guide, you will learn how you can benefit from the regulations on benefits in kind in Austria and Germany and which provisions you should observe.
According to the current regulations, journeys from home to construction sites are classed as business trips and therefore count as business journeys. However, it is important to note that the journey to the company site always counts as a private journey, with the exception of the journey in a βfiscal lorryβ. This has a direct impact on the tax consequences.
The βfiscal lorryβ offers various tax benefits:
Journeys from home to construction sites are also treated as business journeys. These are tax-free as long as there is no non-cash benefit for private use. However, if employees travel to the business premises or undertake purely private journeys, these count as private use.
The biggest challenge is when employees also drive company cars privately. There are regulations on handling in both countries:
If the number of kilometres driven privately per month is very low, the mini benefit in kind can be claimed. This allows employees to pay a small amount, which gives them the freedom to drive up to 250 kilometres privately per month. As long as the kilometres driven privately remain within reasonable limits, both the company and the employee benefit from this regulation. Without the benefit in kind, private use of the vehicle, even for journeys to and from the company site, would not be possible.
In Germany, the private use of company vehicles is treated as a non-cash benefit and is subject to income tax and social security contributions. There are two common methods of assessment:
1% rule: The direct flat-rate method, which is set at 1% of the gross list price of the vehicle per month, plus 0.03% per kilometre travelled to the business premises.
Logbook method: A logbook that documents private and business use. This is particularly advantageous if private use is low.
In both countries, if no private journeys are permitted, this must be clearly documented (e.g. in the employment contract or through a usage agreement). Only then can the vehicle be used exclusively for business journeys. In Germany, use for journeys to the business premises counts as private use in this case, which is not permitted.
The correct handling of company vehicles can not only lead to a better tax situation for the company, but can also benefit the employees. By making targeted use of the mini-benefit in kind in Austria or the logbook method, you can increase the flexibility and attractiveness of your offer.
If you have any questions on this topic or would like to find out more about our digital logbook solutions, please do not hesitate to contact us. Together we can create solutions that both increase your efficiency and reduce your costs.
List of sources:
Forget tedious entries, sources of error or tracing of what was where and when. The electronic logbook simply drives along, records everything in real time and is tax office-compliant. Private journeys? Only the driver knows.
Β§ 17 of the Working Hours Act, Federal Law Gazette No. 461/1969, as amended by Federal Law Gazette No. 2/1975.
Β§ 5. The employer shall submit or send to the competent authorities and their organs, on request, the personal journey books (personal weekly report books) to be kept, where applicable, the copies of the weekly report sheets and the register for inspection. (Source: ris.bka.gv.at)
For some time now, the Austrian tax office has been increasingly focusing on the control of driver's logbooks in Austria.
Especially in Austria, the rules for keeping a logbook are strict:
A record of all journeys in the course of the business trip, as well as private journeys.
Example:
Private journeys are often not taken into account, thus journeys are missing in a manual driver's logbook.
The recording of date, point of departure and destination, purpose of the trip, mileage, kilometers driven.
Example:
The drivers of a pool vehicle forget to enter journeys in a manual driver's logbook, thus the assignment of driver, journey, point of departure and destination is difficult or even impossible.
(Source: usp.gv.at)
Electronic driver's logbooks provide a safe and reliable remedy:
According to Β§ 31a para. 3 StVZO, the vehicle owner must hand over the logbook to the ordering body, or a body designated by it, for inspection at any time upon request. In addition, it must be kept for six months after the expiry of the period for which it must be kept.
There is no obligation to keep the logbook. However, this is highly recommended, as otherwise it is difficult to document a change of driver in the event of an inspection.
With our electronic driver's logbook, this problem is a thing of the past.
We automatically record all journeys, thus protecting you and your drivers from legal consequences.
In accordance with section 24 of the German Road Traffic Act (StVG) under sections 31a, 69a of the German Road Traffic Licensing Regulations (StVZO) in conjunction with 190 of the German Road Traffic Act (BKatV), violations are punished as administrative offenses and fines may be imposed:
If the driver's logbook keeper or his agent (e.g., fleet manager) does not properly keep the imposed logbook.
Example:
The drivers of the pool vehicle often forget to enter a journey, as a result of which the record of a specific journey is missing from a manual driver's logbook.
Approval is no longer possible β fines become due.
If a driver's logbook is not handed over or not kept.
Example:
The manually written logbook is lost or becomes illegible/destroyed due to external influences.
In the event of negligence, fines of up to β¬200 per case may be imposed.
In the event of negligence, fines of up to β¬200 per case may be imposed.
With our electronic logbook, you no longer have to worry about such cases.
Autor: Yvonne Wagner
Rosenberger Telematics, Marketing & PR
Are you interested in press releases or would you like to write a success story with us? Contact me directly at yvonne.wagner@rosenberger.at. I look forward to hearing from you and to a possible collaboration.
