Vehicle logbook is a complete record of all trips made with a company-used motor vehicle that documents to the tax office the actual split between business and private use. It serves both to determine the taxable benefit in kind for company cars and to calculate the input VAT deduction for vehicles used for mixed purposes.
Legal basis and requirements
The logbook is tax-relevant and subject to the provisions of the Income Tax Act (EStG), the Value Added Tax Act (UStG) as well as the retention obligations of the Fiscal Code (Section 147 AO). In addition, the records must comply with the principles of proper accounting and documentation (GoBD).
- Formal minimum information: Date, odometer reading at the start and end of each trip, route (start and destination), purpose of travel, kilometres driven and, for business trips, the name of any accompanying client or business partner, if relevant.
- Completeness and timeliness: A logbook must be kept promptly; retrospective additions are regularly not accepted by the tax office.
- Form: Can be handwritten or electronic; electronic solutions must be GoBD-compliant and tamper-proof.
- Retention: Logbooks are considered accounting-relevant documents and are generally to be retained for 10 years (Section 147 AO).
Practical application in accounting
For freelancers and small businesses the logbook has two central functions: correctly determining the private-use share and allocating input VAT deduction and business expenses.
Calculation of the private-use share
Private use is usually determined by the mileage split:
- Private share = Private kilometres / Total kilometres
- Vehicle operating costs × Business share = deductible business expenses
Example: Annual mileage 20,000 km, of which 12,000 km are business. The business share is 60%.
| Item | Amount |
|---|---|
| Total vehicle costs (year) | 6.000 € |
| Business share (60 %) | 3.600 € deductible |
| Private share (40 %) | 2.400 € not deductible |
VAT treatment
When claiming input VAT for acquired vehicles, the input VAT must be reduced in line with the business-use share if the vehicle is also used privately. A continuously maintained logbook is important to demonstrate the business-use share to the tax office.
Concrete examples and use cases
Case 1: Self-employed tax advisor with a company car
- Keeps a logbook: Evidence: 85 % business → full input VAT may be claimed for 85 % of the purchase and operating costs; the taxable benefit for private trips is eliminated or assessed as low.
- Does not keep an accepted logbook: The tax office applies the 1% rule. This means that monthly 1 % of the gross list price is treated as a taxable benefit, regardless of actual use.
Case 2: Small business owner with mixed use
- The logbook provides the business share so that proportional business expenses and input VAT deduction can be calculated correctly.
Tips for correct maintenance and common errors
A legally secure logbook reduces tax risks. Pay attention to the following points:
- Completeness: No gaps in the odometer readings; document every trip.
- Timely entry: Record at least on the day of the trip or promptly thereafter.
- Traceable purpose of travel: Do not write just "business", be specific: "Client appointment Müller, contract negotiation".
- Electronic systems: Use only GoBD-compliant apps or telematics solutions; ensure export options for the tax office.
- Control: Compare logbook kilometres with the odometer reading at year-end for plausibility.
Common errors are incomplete information, retrospective additions, missing signature for handwritten books and keeping multiple separate records, which makes traceability difficult. If the logbook is not accepted, back payments may be imposed by applying the 1% rule as well as possible interest and fines.
Conclusion: A properly kept logbook is an effective tool for freelancers and small businesses in Germany to avoid tax disadvantages and to correctly allocate business expenses and input VAT. Invest in clean, GoBD-compliant documentation — it pays off.