Why Keep a Digital Logbook?
Do you use company cars in your business, perhaps even on lease? Then you should know that if you want to claim VAT on fuel, servicing, or other expenses, you need to maintain a complete and credible logbook. Not just for tax deductibility, but also due to strict legal requirements.
What Does the Law Say?
Accounting Act Requirements
Accounting entities are obliged to keep accounts "completely, demonstrably and correctly". This means that every expense (for example fuel) must be documented not only by an invoice, but also by the purpose of use – i.e., a verifiable logbook.
VAT Act Requirements
A VAT payer can only claim a deduction if they can prove that the expense relates to their economic activity. If they do not keep a logbook or keep it inadequately, the tax office can refuse the deduction and assess additional tax.
Penalties
If the tax administrator assesses additional VAT, they can impose a fine of up to 20% of the assessed amount. In practice, this can mean tens of thousands extra.
Why Isn't a Paper Logbook Enough?
Paper records are easily disputable and impractical. Tax authorities during audits require a digital logbook – ideally automatically generated, without manual errors and omissions.
Digital logbook:
How Can SmartGPS365 Help?
Our GPS units meet legal requirements and also bring a number of benefits for company fleet management:
SmartGPS OBD CAN – easy installation (Plug & Play), immediately functional, digital logbook and consumption control.
SmartGPS Key – hidden installation, automatic driver recognition, geofencing, remote vehicle immobilisation, vehicle sharing via digital key.
SmartGPS Truck – solution for freight transport with online tachograph data download and fine prevention.
Each device offers live vehicle location tracking, digital logbook and export for accounting documents.
Benefits of Digital Logbook
Summary
The law is unforgiving in this area – without a digital logbook, you're exposing yourself to unnecessary risk. Yet the solution is simple and available for just a few pence per day. Better to have a digital logbook today than pay a fine tomorrow.