Private vehicle use: (2) logbook method

With the logbook method, you calculate the private use of your company vehicle based on the actual vehicle costs incurred and the actual kilometres driven.

For a vehicle used for business purposes more than 50% of the time, the logbook method is an alternative to the 1% method. A proper logbook is required.

Private usage value = Total costs × private usage percentage

You calculate the private usage percentage as follows:

Private kilometres driven ÷ total mileage × 100

Example: You drive a total of 25,000 km in the year, of which 10,000 km are private. The relevant vehicle costs amount to 8,000 Euro:

• Private usage percentage: 10,000 km ÷ 25,000 km × 100 = 40%.
• Private usage value: 8,000 Euro × 40% = 3,200 Euro.

Which journeys count as private trips?

Private trips include, for example, shopping, leisure, and holiday trips.

Journeys between home and the first place of business are not considered private trips. They must be recorded separately. The same applies to family trips home as part of a business-related double household.

What are the requirements for the logbook?

The logbook must be kept continuously, promptly, completely, and in a closed form.

For business trips, the following must be specified:

• Date,
• Odometer reading at the start and end of the trip,
• Destination,
• Purpose of the trip, and
• Business partners or customers visited.

For private trips, it is generally sufficient to state the kilometres driven. For journeys between home and the first place of business, a brief note is sufficient.

An electronic logbook is also possible. Subsequent changes must be excluded or documented in a traceable manner.

Which costs are taken into account?

The actual vehicle costs incurred are taken into account for the calculation. These include, for example:

• Depreciation (AfA) or leasing costs,
• Fuel or charging electricity,
• Maintenance and repairs,
• Insurance,
• Vehicle tax, and
• Other running vehicle costs.

The costs included in the calculation must be proven. An estimate of missing expenses may result in the logbook method not being recognised. The Federal Fiscal Court has confirmed this, particularly for estimated fuel costs not supported by receipts (BFH ruling of 15.12.2022, VI R 44/20).

How are journeys between home and the first place of business taken into account?

These journeys are not part of the private usage percentage. The actual vehicle costs incurred for them are determined separately using the logbook.

As a business expense, only the travel allowance is generally deductible. For 2025, it is 0.30 Euro per kilometre for the first 20 kilometres and 0.38 Euro from the 21st kilometre.

What are the special conditions for electric vehicles in 2025?

Certain electric vehicles are also tax-advantaged with the logbook method. Unlike the 1% method, the gross list price is not directly reduced. Instead, the purchase costs or the depreciation on them, or comparable leasing and rental costs, are only partially taken into account.

For purely electric vehicles purchased or leased in 2025:

• 01.01.2025 to 30.06.2025: For a gross list price up to 70,000 Euro, the eligible costs are only considered at a quarter.
• After 30.06.2025: The price limit for the quarter rate is 100,000 Euro.

If the gross list price exceeds the relevant limit, the eligible costs are generally considered at half if the legal requirements are met.

Running costs such as electricity, insurance, or maintenance are generally not halved or quartered.

What are the special conditions for plug-in hybrids in 2025?

For a plug-in hybrid purchased or leased in 2025, the purchase costs or comparable leasing or rental costs are generally only considered at half if at least one of the following conditions is met:

• CO2 emissions of no more than 50 grams per kilometre, or
• A purely electric range of at least 80 kilometres.

For vehicles purchased or leased before 2025, the conditions at the time of purchase or leasing apply.

How is VAT calculated?

The private usage percentage determined using the logbook can also be used for VAT. However, only costs subject to input tax are considered.

Costs without input tax – such as vehicle tax or certain insurance premiums – are deducted in their actual amount. Unlike the 1% method, there is no flat-rate deduction of 20% for this.

Example: The total costs amount to 8,000 Euro, the private usage percentage is 40%. Of the total costs, 1,000 Euro are not subject to input tax:

• Private usage value: 8,000 Euro × 40% = 3,200 Euro.
• Costs relevant for VAT: 8,000 Euro − 1,000 Euro = 7,000 Euro.
• Private share: 7,000 Euro × 40% = 2,800 Euro.
• VAT: 2,800 Euro × 19% = 532 Euro.

The private usage value is therefore 3,200 Euro. Additionally, 532 Euro VAT must be taken into account.

Important: The income tax halving or quartering for electric and hybrid electric vehicles does not apply to VAT.