German Court Rules: No Tax Deduction for Using Private Car Over Company Vehicle
Neustadt an der Weinstraße – September 11, 2026 -- Employees who skip a free company car and drive their own vehicle for business trips can lose the right to deduct those travel costs from their taxes, Germany's Federal Fiscal Court (Bundesfinanzhof, BFH) has ruled.
An employee tried to deduct nearly 3,800 euros in private car expenses
The case centered on a worker who had access to a company car that he and his wife were also permitted to use privately. Despite this, he took his own car for three business trips and claimed roughly 3,800 euros in travel costs as work-related expenses on his tax return.
The local tax office rejected the claim, but the man sued and won at the Lower Saxony Finance Court. The tax office then appealed, sending the dispute to the BFH for a final decision.