How to account for the acquisition of a company vehicle?


It is common in the life of a company that it wishes to acquire a company vehicle. For best accountancy training Best school of accountancy In Lahore. Depending on the nature of the latter - passenger car or utility vehicle - the accounting for this acquisition may have specific features to be discovered in this article.
Before we look at the accounting for the purchase of a company vehicle, we still need to know what we are talking about.
Thus, a company vehicle is simply that of which the owner or lessee is a commercial company. It can be a commercial vehicle or a passenger vehicle. For the second option, however, the tax administration limits the depreciation charge to € 18,300, which estimates that a company does not need luxurious vehicles.
For a company, a company vehicle becomes an asset that can be depreciated over several financial years or for only 12 months (in the case of own vehicles).
The purchase price of a company vehicle
To accurately account for the purchase of a company vehicle, it is important to know how to determine the purchase price. It consists of various elements:
The purchase price in the knowledge that the amount is excluded for a utility and the amount inclusive of tax for a passenger vehicle, the VAT being deductible in this second option
The costs of "delivery" of the vehicle to the company
The costs of providing
The equipment and accessories integrated in the vehicle (HT for a utility and with VAT for a passenger vehicle)
Note that for non-integrated equipment such as a GPS, it is generally best to record them as charges.

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