Professional paper

CARS IN COMPANY’S ASSETS

Jasna Vuk orcid.org/0000-0003-2975-5776 ; RRiF College of Financial Management, Zagreb, Hrvatska

Abstract

Upon performing its business activities a company may use the cars owned by
the company or the cars leased according to the agreement on financial lease. The
taxation and the accounting treatment of a company’s car depends on the way it
has been purchased and the fact whether such a car is to be used for the transportation
of employees, board members or for performing a business activity.  In terms
of taxation, the cars used for the personal transportation of employees and board
members have a less favourable tax position according to the VAT Act and the Profit
Tax Act, compared to the cars used for performing a business activity.

Keywords

cars; assets; financial lease; taxation; value added tax

Hrčak ID:

177388

URI

https://hrcak.srce.hr/177388

Publication date:

31.12.2016.

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