Mileage logs: what requirements must they meet? How exactly do they work, what should you look out for, and what if the mileage log is incorrect? We give you eight tips for accurate mileage records.
Tip 1: Know what the tax authorities' requirements are
The Tax and Customs Administration accepts the mileage log if it is complete and can be substantiated with a diary and garage invoices. There must be absolutely no gaps in the records. A complete mileage log consists of:
The brand of the car
The type of car
The license plate of the car
The period during which the car is at your disposal
Per trip: the date, the start and end odometer readings, the departure and arrival addresses, the route you took, the nature of the trip (private or business), and the private detour kilometers if you also drive business kilometers during the same trip.
Tip 2: Is additional tax or mileage registration more interesting?
If more than 500 kilometers per year are driven privately in a company car , the employer must add an amount to the employee's salary because the car is considered additional income. The resulting amount is the taxable benefit . The taxable benefit percentage applicable to the vehicle depends on the car's CO2 emissions.
Important: When the car is registered, the taxable benefit for the car applies according to the taxable benefit categories at that time. View the taxable benefit categories here.
The additional tax is calculated as follows: percentage of the additional tax x list price – personal contribution. Below is a practical example.
Tip 3: Sign the Declaration of No Private Use of Car
If an employee drives less than 500 kilometers per year in a company car, they can apply to the Tax and Customs Administration for a declaration of no private use of the car. In this case, the employer is no longer required to apply a taxable benefit and therefore does not need to withhold payroll taxes . If an employee drives more than 500 kilometers privately in a year, they are personally responsible for this. Only if the Tax and Customs Administration can prove that the employer knew that a declaration was issued incorrectly can they also hold the employer accountable.
The employee must be able to demonstrate that no more than 500 kilometers are driven privately on an annual basis. The best way to do this is to keep a mileage log, which is very easy with a GPS mileage tracking system .
Tip 4: Know the fines for incorrect mileage registration
If the Declaration of No Private Use of a Car is used incorrectly, the taxable benefit must still be paid and you will face heavy fines.
default penalty
If it turns out that the addition for private car use was incorrectly omitted, the inspector will impose a penalty of 80 percent of the statutory maximum of €5.278. In some cases, this penalty can even be increased to 100%. This is standard practice when an incomplete mileage log is submitted. This penalty is payable by the employee, unless the employer was also aware that the declaration was issued incorrectly.
Fine for misdemeanor offense
In cases of gross negligence or gross misconduct, the inspector may also choose to impose a penalty instead of a default penalty of 40% of the additional assessment amount, and in cases of intent, even 80%. If the employee has incomplete mileage records, the penalty can be up to 100% of the additional assessment amount. Do you already know that you drive more than 500 kilometers privately per year and do you have a declaration that you do not use a private car? Then quickly complete the amendment form and withdraw the declaration. While this will result in a subsequent assessment, it could save you from a fine.
If a complete mileage log is required, there are several ways to do so. Manually, each trip completed must be recorded by hand, for example, in a notebook or journal. This method is time-consuming and increases the risk of errors.
A more efficient and reliable method is to have mileage tracked by a GPS mileage tracking system . This system is installed in the car and automatically records all trips using GPS, so no additional manual steps are required. These trips are sent to a personal online account, where the driver can easily view and review them after logging in. Comments can also be added to a trip, or the nature of a trip can be modified. This mileage log can be downloaded with just a few clicks to PDF, Excel, or an Audit File for the Tax Authorities.
Tip 6: Pay attention to the Fiscal Quality Mark for mileage registration
Since the end of 2013, the “ Quality Mark for Trip Registration Systems ” has existed, ensuring that at TrackJack you are provided with a mileage registration system that meets the requirements of the Tax and Customs Administration. This quality mark was established in collaboration between Vereniging Auto Van De Zaak (VAVDZ), the RAI Association, various industry parties, and the Tax and Customs Administration. What are the benefits of a quality mark?
You are guaranteed a high-quality mileage registration.
The mileage registration meets the requirements of the Tax Authorities.
You are assured that the privacy and continuity of the supplier are guaranteed.
If you are audited by the Tax Authorities, you may be eligible for audit relief.
Tip 7: For driving school owners, there is a simplified mileage registration for driving school owners
Driving school owners who want to avoid the additional tax liability for private use of a company car can simply use a simplified mileage log. This only requires recording the start and end mileage for each workday. Combined with existing student records, this should provide the Tax and Customs Administration with a sufficient overview of the business kilometers driven.
Tip 8: Simplified mileage registration for vans as well
If, due to the nature of his work, an employee has to make many trips a day in the company delivery van, keeping a mileage log can be a significant burden for both him and his employer. Therefore, for practical reasons, the employee may provide proof of the number of private kilometers driven using a combination of:
a simplified mileage registration.
the business addresses in the employer's administration.
This is subject to the condition that the employer has agreed in writing with the employee.
agreed that:
– the employee keeps a simplified mileage registration.
– private use during working and lunch hours is not permitted.
– the employer has the business addresses in its administration.
