Can I Claim Motor Vehicles and Fuel as a Business Expense in Uganda?
Partly. Running costs of vehicles used for the business are deductible for the business share; the vehicle itself is claimed through wear and tear, not as an expense.
Finn does your books in Uganda
AccountsOS keeps the books for Uganda businesses, tracks tax deadlines and handles expenses, in plain English. Ask Finn about yours, no signup needed.
What Uganda Revenue Authority (URA) says
A vehicle is a depreciable asset: its cost is claimed through wear and tear at the Income Tax Act class rate, not expensed at once. Fuel, repairs and insurance for business use are deductible. Private use is not. Where the supplier must use EFRIS, the cost is deductible for income tax and the VAT recoverable only with an EFRIS e-invoice or e-receipt. Ask for the fiscal document number before you pay.
When you can claim
- Fuel for deliveries and client visits
- Repairs and servicing of business vehicles
- Insurance on business vehicles
- Boda boda transport for business errands
- Parking fees on business trips
- Hire of a vehicle for a business trip
- Road licences and inspections for business vehicles
- Tyres and spare parts for delivery vehicles
- Car wash and cleaning for vehicles used with clients
When you cannot claim
- Fuel for private trips
- The purchase price as a one-off expense
- Traffic fines
- Repairs to a director's private car
Good to know
Pro tip: Keep a simple trip log so the business share is easy to support. Pay for fuel with a company card or mobile money from the business account, and note the vehicle and trip in the expense claim.
Important: Finn posts a vehicle purchase as a fixed asset and does not quote a wear-and-tear rate until it is confirmed in the current Act. If a director or employee uses a company vehicle privately, the private use may be a taxable benefit. Ask your payroll adviser before deciding how to treat it.
Related expenses
Stop guessing what you can claim in Uganda
AccountsOS automatically categorises expenses with Uganda Revenue Authority (URA)-aware rules and tells you exactly what is claimable.
Try Free