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Bookkeeping for taxi drivers: VAT, fuel and kilometres
Written by Ilias5 min read
If you drive a taxi as a freelancer or work through ride apps, your bookkeeping has a few particularities. Passenger transport falls under the low VAT rate, you have substantial car costs and you must record your trips and turnover accurately. This article explains what you should watch for as a taxi driver to keep your bookkeeping correct.
The VAT rate for taxi transport
Passenger transport by taxi falls under the low VAT rate of 9 percent. So you charge that on your trips. The VAT on your costs, such as fuel, maintenance and the purchase of your car, is reclaimed at the rate that applies to those, usually 21 percent. Because your costs are often at 21 percent and your turnover at 9 percent, you regularly get VAT back.
If you work through a platform or ride app, check carefully how the VAT on those trips is handled and what the platform passes on to you. Keep the platform's settlements as part of your bookkeeping.
Car costs and depreciation
Your car is your main business asset. The purchase costs are depreciated over several years, usually five. Fuel, maintenance, tyres, insurance and road tax are deductible costs. Because you make many kilometres, these costs add up considerably, so keep all receipts and invoices carefully.
If you also use the car privately, you deal with the addition to taxable income. For a taxi that you use almost exclusively for business, you can often avoid this with a watertight mileage record showing that you drive less than 500 kilometres privately per year.
Trip and turnover records
The tax authorities pay close attention to turnover among taxi drivers. So keep an accurate trip record: date, trips, kilometres driven and amounts received. Many taxis have an on-board computer that registers this; use that data in your bookkeeping.
A watertight record prevents the tax authorities from estimating your turnover themselves. If you work neatly and digitally, during an audit you can show exactly how you arrived at your figures.
This article provides general information based on the rules known for 2026 and does not replace personal tax advice. For your specific situation, we're happy to take a look with you.
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