You are a business manager, manager of a company, president of the SAS, and you are thinking about the possibility of buying a vehicle in the name of the company for your business trips. But this choice has many consequences. Let's look at the rules, pros and cons.
Can all companies buy a company car?
It is possible to buy a professional vehicle in all types of business. However, since sole proprietorships are not considered as companies, personal and professional assets are not differentiated. Consequently, the purchase of the professional vehicle will not enter into the assets of the company strictly speaking.
On the other hand, the rules for company vehicles do not apply to auto-entrepreneurs and micro-entrepreneurs, who do not have real accounts.
Where to buy a company vehicle?
It is possible to buy a professional vehicle:
– From an individual (second-hand purchase) – From a car dealer (new or second-hand purchase). – With a dealership to benefit from a comprehensive support offer for administrative management and financing of the vehicle (new purchase)
That is to say, if you are about to buy a used Nissan Qashqai from a dealer, you just have to take the plunge.
The main rules to know about buying a company vehicle
For passenger cars
– The tax deduction for the depreciation of private cars is capped at €18,300 or €9,900 for polluting vehicles. – All expenses related to the use of the vehicle are deductible from the result: petrol, insurance, maintenance (oil change, tires), tolls. – The possession of a company vehicle gives rise to the payment of a tax: the TVS, which is not deductible from the result.
Exception: sole proprietorships do not have to pay the TVS.
– If the business manager uses the vehicle for private purposes, this constitutes a benefit in kind subject to social security contributions and the payment of income tax. – The VAT paid to acquire the vehicle is not recoverable. – VAT on expenses related to the use of the vehicle (maintenance for example) is also not recoverable. – VAT on unleaded petrol type fuel is not recoverable. On the other hand, VAT on diesel and superethanol is recoverable at 80% (100% for LPG).
For utility vehicles
– The tax deduction of the depreciation of commercial vehicles is 100%. – All expenses related to the use of the vehicle are deductible from the result. – Possession of a commercial vehicle does not give rise to the payment of TVS. – The VAT paid to acquire the vehicle is fully recoverable. – VAT on expenses related to the use of the vehicle (maintenance for example) is fully recoverable.