As of January 1, 2019, the tax on car rental changes.
So far, if you rented a car and could prove to what extent you use it for business purposes, you could deduct VAT to this extent. Now, the rule is that if someone uses his rented car for business purposes, he will immediately get the right to deduct 50 percent of the related VAT in the case of a lease or an operating lease, ”said Sándor Hegedűs, Head of Tax Business at RSM. That way, the compulsion to make road records disappears and businesses are financially better.
There is still the possibility of road-based tax deduction: in the FMCG sector, for example, many customers visit the country, in such cases business interest can be as high as 80-90 percent.
Since a significant proportion of company cars are utilized by operating leasing or long-term rentals, a lot of vehicles may be affected by the change. According to Sándor Hegedűs, 70-80 percent of the company cars can be affected.
There are a lot of company cars, as new vehicles are placed on the market much more than a private car, said the head of the tax business of RSM.
(Source: vezess.hu / photo: pixabay.com)