Input tax apportionment for a mixed-use car

The allocation of input tax for a vehicle used for both VAT-liable and VAT-exempt transactions is based on the mileage for the respective transactions.

If a newly purchased vehicle is used to generate both sales subject to VAT and sales exempt from VAT, only a partial input tax deduction is possible. The Baden-Württemberg tax court considers the best apportionment key to be an apportionment in proportion to the mileage for the two activities. In contrast, the court considers an apportionment in proportion to the taxable and tax-free turnover (turnover key) to be less suitable because the turnover can also be dependent on other factors and the amount is generally independent of the distance traveled.