If the situation with the peculiarities of accounting of the expenses for using a car during the business trip in Ukraine is more or less clear,then their taxation is rather challenging for accounting officers,since legislation tends to change rapidly. All the nuances concerning the peculiarities of taxation of expenses incurred by an employee in a business trip by officialcar are clarified in the following.
Income tax
Starting from January 1, 2015, the subject to the income tax is to be determined by adjusting (increasing or decreasing) the financial result before tax (profit or loss) calculated on the basis of accounting in accordance with the Accounting Standards or IFRS (paragraph 134.1.1 of the Tax Code of Ukraine, hereinafter − TCU). In this case, companies that necessarily or voluntarily adjust the financial result, in case of excess fuel consumption above the linear norm, do not make any adjustments. After all, TCU does not provide for this (see the letter of SFSU dated June 9, 2015, No. 11999/6/99-99-19-01-01-15).
VAT
The enterprise includes in the tax credit the amount of value added tax (hereinafter − VAT) paid during the acquisition of FL in the presence of a properly executed tax invoice, registered in the Unified Register of Tax Invoices (para. 198.1 of TCU).
Tax authorities believe that non-standard expenses for FL are non-business expenses.
The amount of VAT can be referred to a tax credit based on cash checks containing the amount of received FL, the total amount of VAT accrued, with the definition of the fiscal number and the tax number of the supplier. The total amount of purchased FL can not exceed UAH 200 per day, excluding VAT (subsection “б”, No. 201.11 of TCU). In case of exceeding this restriction, the seller, should issue a tax invoice at the request of the buyer.
PIT
The amount of travel expenses reimbursed to an employee within the limits of actual expenses is not his/her income (para. 170.9.1 of TCU). In particular, such expenses include travel costs. In view of this thesis, the employee can be reimbursed the cost of purchase in a business trip, the cost of car parking, including leased.
Amounts of compensation are not the subject to the tax personal income tax (hereinafter − PIT), only if there are confirmatory documents certifying the amount of “transport” expenses.
In addition, it should be remembered that business trips expenses are not the subject to the personal income tax in the presence of documents confirming the connection of such a business trip with the economic activities of the employer/sending party.
In order to be reimbursed the employee, who left for a business trip by an official car, must provide an advance report, as well as primary documents confirming the expenses. Please, pay attention that the FL expenses can be compensated by the company on the basis of the travel letter. The total mileage of the car during a business trip will be indicated in it. Therefore, the company can easily calculate the amount of expenses for the fuel and lubricants, taking into account the mileage and the norms of fuel and lubricants consumption in motor vehicles, approved by the order of the Ministry of Transport of Ukraine dated February 10, 1998, No. 43.
