Employees who use a company car must pay tax on commutes between their home and workplace. As a rule, taxation is applied on a flat-rate basis for both income tax and VAT, amounting to 0.03% of the gross list price (GLP) per kilometer of distance each month – regardless of the actual number of trips.

It is assumed that approximately 180 commutes take place per year. Individual usage – such as frequent remote work, business trips, or sick leave – is not taken into account. In practice, this often leads to more being taxed than actually driven. Alternatively, it is possible to switch to taxation based on actual trips.

KMLZ offers a convenient solution with the CCTB for calculating VAT and income tax savings related to company cars.

The CCTB provides each employee with a printable and savable file containing the calculation, including instructions for claiming the benefit in their income tax return and a letter for submission to the tax office.

Companies can use the CCTB to initiate the calculation of VAT reductions based on the total of all provided data and incorporate the result into the VAT return for the relevant year.

By applying a tax rate of 0.002% for actual commutes between home and the first place of work, both the employee’s income tax and the employer’s VAT liability can be reduced.

For documentation purposes, the tool also generates a printable and savable file with the calculation of the revised VAT assessment basis and an explanation for the tax office.