Penalties for not submitting information about company car

Those tax payers who use their vehicle/s for business purposes only and keep a logbook/s for the vehicle/s may be able to deduct the entire VAT. The with holding of information about their vehicle/s with the full deduction at the tax office, will be subject to fine penalties, or even imprisonment.

The draft amendment to the VAT Act assumes that the full deduction of tax for vehicle/s used entirely for business, will only be given if information about these vehicle/s is filed with the tax authorities. Therefore, keeping a logbook/s is necessary, the information will have to include:

• Vehicle registration number;
• Start and end date of the travelling accounts (indicating the date of termination of the exclsuive business use of the vehicle/s);
• The odometer readings – the start date of records, the beginning of each billing period and the end date of the logook guidance;
• Ongoing registration number;
• The date and destination;
• Route description (to and from);
• The actual number of kilometers travelled;
• Signature of the driver;
• Confirmation of the authenticity if the item by the taxpayer;
• The number of kilometers at the end of each accounting period and at the end of keeping records.

In the case of not submitting such information, or submitting information that is not accurate, the taxpayers entitlement to a deduction of VAT has a limited amount of (50%). In addition, the tax authority will impose fine penalties on the company. The relevant provisions in this area are implemented in by Article 5 of the amendment to the Criminal Tax law.