Logbook records – what must they contain and how to keep them correctly?

If the company is unable to prove 100% use of the vehicle for business purposes, the tax administrator may reject the claim to deduct VAT from the vehicle, as well as additional purchases for the vehicle. You can read more about the reduction in the claim to deduct VAT for vehicles in the article on our website.

The entrepreneur must keep separate records for each vehicle owned or used by the entrepreneur, in accordance with the requirements of the law.

1. Basic data about the motor vehicle

Every vehicle used for business purposes must have its own registration. This section includes in particular:

• Vehicle VIN number (vehicle identification number),
• Vehicle registration number (license plate),
• Name and type of vehicle.

This data serves to uniquely identify the motor vehicle within accounting and tax records.

2. Odometer status record

By law, the entrepreneur is obliged to record the speedometer reading:

• on the date of commencement of record keeping,
• at the end of each tax period,
• and on the day of termination of record keeping.

This data helps to demonstrate the extent of vehicle use and ensures transparency towards tax authorities.

3. Records of individual trips

The most important part of the logbook is the detailed record of each trip. Each record must include:

• Trip serial number,
• Driver's name and surname,
• Date and time of start and end of the trip,
• Purpose of driving (it must be proven that the vehicle was used for business),
• Starting point and ending point of the trip,
• Mileage and tachometer reading before and after the ride.

Records kept in this way serve as proof that the vehicle was used exclusively for business purposes, which affects the recognition of tax expenses and the deduction of VAT.

4. Recording of vehicle operating expenses

The records also include all expenses associated with operating the car, for example:

• fuel,
• repairs and service,
• fuses,
• highway toll stickers,
• car accessories,
• spare parts.

Each entry must contain:

• specification of goods or services,
• purchase price excluding VAT,
• date of acquisition of goods or receipt of service.

This data is recorded clearly and separately for each vehicle.

5. Obligation to make records available to the tax office

According to Section 85n paragraph 7 of the VAT Act, a taxpayer is obliged to make electronically kept records available upon request by the tax office within the period specified in the request. Therefore, it is important to have records processed in a clear and digital form.

6. Record keeping

The storage of electronic records of the journey log is subject to Section 70 paragraph 11 letter b of the VAT Act, which sets out the conditions for storing tax documents and records.

The registration of the driving record pursuant to Section 85n, paragraphs 6 to 8 of Act No. 222/2004 Coll. on VAT is an important document proving that the vehicle was used exclusively for business purposes. Properly maintained electronic records protect the entrepreneur during tax audits and ensure the demonstrability of the vehicle's use in accordance with the law.

If you need help setting up a system for proper vehicle registration in your company, do not hesitate to contact us.