Private leasing and tax: what you need to know
Tax implications of private leasing for individuals: what you need to know
One of the first questions people ask about private long-term leasing is: what about the tax implications? It’s a logical question, as nobody wants any surprises later on. Let’s explain this in a very simple and transparent way.
What is included in your monthly leasing cost?
With private leasing, you don’t buy the car yourself. You lease it for a fixed monthly amount, including VAT. What’s included in the standard price? Servicing and repairs, summer tyres, breakdown assistance, and even the registration tax and annual road tax. The most important elements are all included in a single invoice.
Optional services and extra peace of mind
And the rest? That’s up to you. Want more peace of mind? Simply add options to your contract such as insurance, the Perfecta service in the event of an accident, or winter tyres.
Predictable costs and no financial surprises
Your costs are therefore predictable and clear: you know exactly what will be debited from your account each month. No separate bills, no unexpected repairs to upset your budget.
Private leasing and tax deductibility explained
Important to know: private leasing is intended for private individuals and is not tax-deductible. You cannot deduct the costs as you would for a company car. But as everything is included in your monthly payment, you keep your expenses under control and avoid surprises.
No balance sheet impact and no depreciation concerns
And this offers you another advantage: the car does not appear on your balance sheet. So you don’t have to worry about depreciation or residual value. This saves you a lot of paperwork and, above all, a lot of hassle.
Why private leasing offers clarity and simplicity
What about the tax implications of private leasing? It’s simple: you pay a single monthly amount, including VAT. No hidden costs, no hassle. At Arval, the terms are clear and transparent, so you can do what you really want: drive without a care in the world.
