VAT Advantage of Car Rental
Car rental offers many advantages to a company and eliminates most expense items in its budget. The first of these advantages is tax-related. It is possible to deduct the rental fee of the rented vehicle from your commercial or corporate earnings. Moreover, this situation will repeat regularly every month (depending on the agreement you make with the Istanbul rent a car company). In other words, the car rental fee is an expense, and it is possible to deduct it from taxes. If you choose to buy instead of rent, there is no such advantage. In fact, considering that Vehicle Purchase Tax is paid twice a year and this tax cannot be shown as an expense, purchasing results in a loss.
Get Rid of Tax and Insurance Expenses
The final advantage of car rental is that it allows you to get rid of expense items such as traffic insurance and comprehensive insurance. Especially for companies that use many vehicles, these expense items can amount to tens of thousands of liras each year. However, when a vehicle is rented, both taxes and insurance expenses are eliminated, and it is even possible to make a profit due to tax deductions. The Istanbul rent a car company you agree with will issue an invoice for the vehicle or vehicles you rent, and this invoice will include a VAT amount. It is possible to deduct this VAT amount from your taxes in the relevant period. Thus, not only the rental fee but also the VAT of this fee can be deducted from taxes. This makes it possible to say that Istanbul rent a car rental fees are actually much cheaper.
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