A VTC driver has accounting and fiscal obligations that differ, depending on whether he is a self-employed person or if he has his own business.

It is therefore important to know how to minimize your taxes to optimize your taxation, according to your situation.

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Ask a Keobiz advisor.

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1. VAT recovery

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VAT is based on a collection and deduction system.

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A distinction is made between:

- VAT collected = when the company sells a product/service; it collects the VAT amount and must remit it it to the State

- Deductible VAT = when the company buys a product/service; it advances the amount of VAT and then the State reimburses it

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The rate of VAT collected varies according to the sector of activity.

For the VTC sector, it is fixed at:

● 10% for predefined passenger transport from point A to point B.

● 20% for vehicle provision services.

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To recover all of the deductible VAT, the charges must relate to your vehicle used for your VTC activity and the vehicle must not be used for other personal purposes. Here are examples of charges, specific to the VTC activity, through which you can recover VAT to optimize your taxation:

➢ Buying the vehicle

➢ Vehicle rentals

➢ Vehicle maintenance

➢ Vehicle fuel

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More practically, you must maximize expenses in order to be able to deduct VAT, for example, if you pay for a hotel during your mission, you cannot recover VAT, however, if you pay for a hotel for a customer, then the VAT is recoverable... the devil is in the details.

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2. Kilometric allowances (or IK)

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The calculation of mileage allowances varies according to the distance traveled in kilometers during the year, the fiscal power of your vehicle and the type of energy used (electric or thermal). The payment of IK is not subject to social security contributions or income tax, it would be a shame not to recover these refunds!

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Example: According to the 2022 mileage scale for a thermal vehicle For a distance traveled of 10,000 kilometers professionally with a vehicle with a power of 6 hp, the amount of mileage expenses amounts to: (0.355 x 10,000) + 1 355 x 10 000) + 1 382 = 4 932 euros.

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Good to know: if you have a 100% electric vehicle, then you have to increase the reimbursement by 20%.

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‍3. The choice of tax system

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Tax optimization is also based on the choice of the tax regime, between IS (Corporate Tax) and IR (Income Tax), obviously depending on the legal form chosen.

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This choice is determined on a case-by-case basis, based on existing and future needs, as well as the personal and professional optimization strategy.

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4. The method of financing the vehicle

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There are several financing methods:

- Leasing with an option to purchase (LOA)

- Long-term rental (LLD)

- Bank loan

- Equity financing

- Punctual rental

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This choice must be determined when drawing up a business plan.

Get support in developing your Business Plan.

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Make an appointment with an expert: https://bit.ly/keobiz

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