# Can I reclaim the VAT on my company car in France?

Last updated: 27 October 2026
Country: France
Category: tax

**Quick answer:** Generally no. VAT on cars designed to carry people, or of mixed use, is excluded from deduction when they are fixed assets. Part of the VAT on their fuel can be deducted, and a utility vehicle that is not excluded follows normal rules.

## Detailed explanation

## The rule

The BOFiP excludes from VAT deduction vehicles designed to carry people or of mixed use, which covers most cars and camper vans, when they are fixed assets or not meant for resale as new. A utility van that is not in that category can carry deductible VAT.

## Fuel

For an excluded vehicle, only part of the VAT on fuel is deductible, using the share set in the BOFiP table. Fuel for private trips is never deductible.

## Private use

If the company lets a director or an employee use the car privately, it creates a benefit in kind. For 2026 the flat-rate value is 15% of the purchase cost a year, or 10% if the vehicle is more than 5 years old, fuel excluded.

## How Finn helps

Finn records the purchase, flags a passenger car so the VAT is not put on the CA3 and applies the benefit-in-kind figures. Your expert-comptable confirms the treatment.

Source: https://bofip.impots.gouv.fr/bofip/1192-PGP.html/identifiant=BOI-TVA-DED-30-30-20-20241120

## Real-world examples

### Passenger car bought by the company

The VAT on the purchase price is not deductible on the CA3.

### Utility van

If it is not an excluded vehicle, the VAT on it and its fuel follows the common rules.

## Common mistakes to avoid

- Deducting VAT on a car because the invoice is in the company's name
- Forgetting the benefit in kind when a car is used privately

## Frequently asked questions

### Is the car cost deductible for IS?

Costs of a vehicle used for the business reduce profit in proportion to business use. The VAT rule is a separate matter.

## Practical tips

- Ask your expert-comptable before buying a vehicle
- Keep a log of business trips

## Related questions

- [When is my French VAT return (CA3) due?](https://accounts-os.com/fr/questions/when-is-my-ca3-vat-return-due)