Whether Kilometers Reduce Cost of Obtaining.

Kilometer billing, or mileage billing, is a popular form of accounting for costs associated with the use of company cars. But does it actually reduce deductible costs for companies?

For companies that use company cars for business purposes, mileage can be an advantageous solution. It allows you to accurately determine the costs associated with the use of the vehicle, such as fuel, maintenance or insurance, and deduct them as tax-deductible expenses.

However, it is worth remembering that mileage tax requires accurate record-keeping of kilometers driven and costs incurred. In the absence of proper documentation, problems may arise in a possible tax audit.

In addition, it is worth noting that mileage is not always the best solution for every company. In some cases, especially when the company car is used intensively, it may be more cost-effective to settle on the basis of VAT invoices.

In conclusion, mileage can reduce deductible expenses for companies that accurately keep records of kilometers driven and expenses incurred. However, you should carefully analyze your company's situation and consult a tax advisor to choose the best solution for your business.