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ye probably all a vehicle in the company, have you ever asked yourself how to account for this? Well, to answer this question from Circle Gazelle give you guidelines to follow in accounting for this business investment.

As you know, when we buy vehicles to develop our business, we pay a 16% VAT, well, the Treasury believes that only affect the business or professional activity by 50%, what does this mean? therefore we can only deduct 50% VAT on the purchase, as well as for tax purposes will be deductible only 50% of the tax base, but the payback will treat in another post.

Now let's see an example, as the purchase would account:

buy a vehicle the bill is as follows: Taxable
: 15,000 €
VAT (16%): 2,400 €
Invoice Total: 17,000 €

seat to make is as follows:
16 200 218. 1200
transport elements 472. Supported HPIV to 57. Treasury or 523. Provide. unmovable. c / p.

The VAT is 50% of the invoice reflected and 50% increases the value transportation element with the value of the investment would be 15,000 + 1200 = € 16,200 and € 1,200 deductible VAT.

post I hope this will be useful, we believe it is an important issue that is often not given the treatment it deserves, for this reason it is necessary to have a good tax advice and accounting, to avoid errors that could affect our accounting and therefore our taxes. Best regards and until next post ...