In its decision of 17 February 2016 (Az. X R 32/11), the Bundesfinanzhof (BFH) held that no private-use share has to be taxed under the 1% rule for a VW van with only two seats and a windowless cargo area. In the case at hand, the driver's cab was separated by a metal wall, and toolboxes were stored on the cargo area. According to the BFH, no logbook needs to be kept in such cases either, as the vehicle is, in its view, generally not used privately.
With this ruling, the BFH therefore exempts from the 1% rule those vehicles whose objective design and equipment typically make them almost exclusively suitable for transporting goods and which are used for private purposes only occasionally or by way of exception. The grounds of the decision once again expressly note that this principally concerns trucks and tractor units, although the classification under motor vehicle tax law and road traffic law is not decisive.
In the case decided, the tax office took the view that even a two-seater can be used privately. The BFH countered this by arguing that, in that case, every truck — no matter how large — and, in principle, every two-seater vehicle would have to be subject to the 1% rule, since a truck, for example, could in principle also be used for private errands.
In practice, we repeatedly encounter widely differing views from auditors during tax field audits. This ruling should strengthen our arguments going forward, and we very much welcome it as it finally provides a degree of clarity.
Frequently asked questions
Frequently asked questions
Does the 1% rule apply to a VW van with two seats and a windowless cargo area?
No. In its ruling of 17 February 2016 (Az. X R 32/11), the BFH held that no private-use share under the 1% rule must be taxed for a VW van with only two seats, a separated driver's cab and a windowless cargo area. Based on their objective design, such vehicles qualify as pure commercial vehicles for the transport of goods.
Is a logbook required for a pure workshop vehicle?
No. According to the BFH, vehicles that typically serve almost exclusively for the transport of goods do not require a logbook. The BFH assumes that such vehicles are generally not used privately.
Which vehicles are exempt from the 1% rule under BFH case law?
Exempt are vehicles whose objective design and equipment are typically intended almost exclusively for transporting goods and can only occasionally be used privately. This applies in particular to trucks and tractor units, but also to vans equipped accordingly with a separated cargo area.
Is the classification under motor vehicle tax law or road traffic law decisive for the 1% rule?
No. In its reasoning, the BFH makes clear that the classification under motor vehicle tax law or road traffic law is not decisive for the income tax assessment. The sole determining factor is the objective design and equipment of the vehicle.
Is a theoretical possibility of private use sufficient to apply the 1% rule?
No. The BFH expressly contradicted the tax office: if a theoretical possibility of private use were sufficient, even very large trucks would have to fall under the 1% rule, as they too could be used for private errands. What matters, therefore, is the typical intended purpose of the vehicle.