Business assets are all assets that serve the operation of a company on a permanent basis. These include machinery, real estate, IT equipment and, in particular, vehicles in the company fleet. The correct allocation to business assets has a decisive influence on taxation, depreciation and accounting.
What are business assets?
Necessary business assets include all goods that are predominantly – i.e. more than 50% – used for business purposes. Examples
- Company vehicles that are regularly used for customer visits
- Machines and systems in production
- Office equipment and IT hardware
- Tools, inventories, factory buildings
Assets that are used for mixed purposes (private and business) are referred to as discretionary business assets if they are used at least 10% for business purposes and are voluntarily allocated to the business. Below this threshold, they are generally considered private assets.
Business assets in the vehicle fleet
In the vehicle fleet , this applies in particular to vehicles. These are considered business assets if they serve the company on a permanent basis and are predominantly used for business purposes. Consequences:
- Capitalization in the balance sheet
- Depreciation over the useful life (generally six years for cars)
- VAT input tax deduction possible on purchase
- Consideration in the determination of profits
If a vehicle is partly used privately, this proportion must be recorded for tax purposes – e.g. using the 1% rule or a logbook.
Significance for corporate tax
The correct classification of vehicles and other goods as business assets is relevant for tax purposes:
- Determination of profit: Only business assets influence the profit via depreciation, repair costs, etc.
- Value added tax: Input tax can only be deducted if the goods are assigned to a business.
- Income tax: Private use shares must be taxed as a non-cash benefit.
Conclusion
Business assets form the economic basis of a company and have a significant influence on bookkeeping, accounting and tax obligations. Especially in fleet management , a clear and audit-proof allocation of vehicles to business assets is crucial for transparency, legal certainty and tax optimization.
