New at €35,000 excl. VAT, 100% business
Recoverable VAT
€3,675
- Price excluding VAT
- €35,000
- VAT invoiced (21%)
- €7,350
- Recoverable share retained
- 50%
Free calculator · Company car · 2026
Recoverable VAT on a car calculator
On a car, VAT is never 100% recoverable: the VAT Code caps it at 50%, and only if VAT was actually invoiced. The calculator applies the exact rule to your price.
Your parameters
Examples:
€
Excluding VAT by default; tick “price includes VAT” if the displayed price includes VAT (listing).
%
Share of business kilometres. Above 50%, the legal cap applies.
Result
Recoverable VAT
€3,675
- Price excluding VAT
- €35,000
- VAT invoiced (21%)
- €7,350
- Recoverable share retained
- 50%
- Non-recoverable VAT (true cost)
- €3,675
- Total outlay at purchase
- €42,350
Recoverable VAT by business use
| Business use | Recoverable VAT |
|---|---|
| 25% | €1,838 |
| 50% | €3,675 |
| 75% | €3,675 |
| 100% | €3,675 |
Calculate the full true cost
The full calculation chains recoverable VAT, deductible depreciation and the actual tax saving according to your status.
Worked examples 2026
Calculated by the same engine as the full true cost calculation, never estimated by an AI.
New at €35,000 excl. VAT, 30% business
Recoverable VAT
€2,205
- Price excluding VAT
- €35,000
- VAT invoiced (21%)
- €7,350
- Recoverable share retained
- 30%
Used at €18,000 under the margin scheme
Recoverable VAT
€0
- Price excluding VAT
- €18,000
- VAT invoiced (21%)
- €0
- Recoverable share retained
- 0%
How it is calculated
Recoverable VAT = price excl. VAT × 21% × min(business use, 50%) Sale between private individuals or margin scheme → no recoverable VAT Price incl. VAT entered → price excl. VAT = price incl. VAT / 1.21 (if VAT was invoiced)
Article 45, § 2 of the VAT Code limits the deduction of VAT on cars to 50% at most. A VAT-registered person who uses their car 80% for their business therefore only recovers half of the VAT; at 30%, they recover only 30% of it.
VAT must also have been invoiced. A used car bought from a private individual carries none. Nor does a used car bought from a dealer under the margin scheme: the VAT applies to the seller’s margin and is neither shown nor recoverable.
This is exactly the rule the TCO engine applies in the tax saving (“recoverable VAT” line). The price excluding VAT also serves as the base for depreciation and for VAT on subsequent expenses.
Frequently asked questions
Why is VAT on a car capped at 50%?
The legislator presumes that a car is also used for private journeys. Even with 100% business use, the deduction is limited to half of the VAT (art. 45, § 2 of the VAT Code). Vans and light commercial vehicles are not subject to this cap.
How do I prove my business use percentage?
Three methods are accepted: the journey log, the semi-flat-rate formula based on the home-to-work distance, or the general flat rate of 35%. The calculator takes the percentage you enter and applies the 50% cap.
Does a used car bought from a private individual give a right to VAT recovery?
No. Between private individuals, no VAT is invoiced: the price paid is the final price, with no VAT to deduct. The same goes for a used car sold under the margin scheme by a professional.
Does the VAT recovered affect depreciation?
Yes: the non-recoverable share of VAT is added to the depreciable acquisition price. The TCO engine therefore depreciates the price incl. VAT less the VAT recovered, then applies the CO2 deductibility rate.
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