January 24, 2023
Mileage registration: why is it important and what are the requirements?
Do you have a company car or do you use your private car for business? Then a mileage registration is important for you. And not just any mileage registration, your registration must meet certain requirements. In this article we explain why mileage registration is important and what the requirements are.
Why is mileage registration important?
First of all, you want to know why you would keep a mileage registration in the first place. A mileage registration is important in various situations.
Mileage allowance: For every business kilometer you drive, you may deduct an amount from your profit. You will of course need a mileage registration for this.
The mileage reimbursement changes regularly:
2024: 23 cents per business kilometer
2023: 21 cents per business kilometer
2022: 19 cents per business kilometer
Company car: If you have a company car, you need a mileage registration to show that you have driven less than 500 kilometers privately. Otherwise you will have to pay additional tax.
Using your private car for business purposes: If you also use your private car for business purposes, you can reclaim the VAT on the business portion of your journeys. You can read more about how this works exactly here. To reclaim the VAT, you need the trip mileage .
What are the requirements for a mileage registration?
Now that you know why a trip registration is so important, you might also want to know what requirements a mileage registration must meet. In your mileage registration you must state the following according to the rules of the Tax Authorities:
-brand of your car
-type of car
-license plate of your car
-period in which you used the car
-trip data
Your ride details must include the following:
-date
-starting and ending readings of your car’s odometer
-departure and arrival address
-whether it concerns a private trip or a business trip
-the private detour kilometers if you have driven both private and business kilometers during a trip
-your route if you did not take a usual route
It is good to know that driving back and forth from your work address to an appointment is considered two trips.
Furthermore, entrepreneurs with a van and driving instructors can use a simplified journey registration.
A mileage registration is therefore very important. You can choose to keep track of this yourself in Excel, but there are also very useful apps for this. Ultimately, it doesn't matter how you do it, as long as your mileage registration meets the requirements!
