A report by German publication Auto Bild reveals that switching from paper to digital logbooks for recording company car mileage can save thousands of euros annually per employee. The concept is simple: accurate trip recording that separates private from business use, reducing the taxable benefit-in-kind.
A report by German publication Auto Bild reveals that switching from paper to digital logbooks for recording company car mileage can save thousands of euros annually per employee. The concept is simple: accurate trip recording that separates private from business use, reducing the taxable benefit-in-kind.
What is a Digital Car Logbook?
A digital logbook is an app or device that automatically records every trip: date, distance, and route. Instead of manually writing trips in a paper log, the digital system does it accurately and allows direct export of reports for tax authorities or accountants.
How Does It Work?
Most apps use GPS to record start and end points and automatically classify trips as business or private based on time, location, or user input. Some systems connect to the car’s OBD port for more precise data.
How Much Can You Actually Save?
According to the Auto Bild report, drivers can save between €1,000 and €3,000 per year (approximately SAR 3,750 to SAR 11,250), depending on the number of business kilometers driven and the tax rate. The savings come from proving that a higher percentage of car use is for business, reducing the taxable value of the benefit-in-kind.
Why is a Digital Logbook Better Than Paper?
- Accuracy: No transcription errors or forgotten trips.
- Savings: Ensures private use is not overestimated, lowering tax.
- Convenience: No manual logging; the app runs in the background.
- Official Acceptance: Most countries accept digital records if they meet conditions (e.g., electronic signature, non-tamperable).
- Ready Reports: Export monthly or annual reports ready for submission.
Does This Apply to Saudi Arabia and the Gulf?
In Saudi Arabia, the Zakat, Tax and Customs Authority (ZATCA) has not yet issued a clear directive accepting digital logbooks as a substitute for paper ones. However, many companies already use them internally for fleet tracking. In the UAE, the Federal Tax Authority accepts digital records if they meet technical standards. With increasing digitization, digital logbooks are expected to become the norm soon.
What Are the Best Available Apps?
Apps like MileIQ, Everlance, and Drivvo offer easy solutions. Some are free with limits, while paid subscriptions start from $5 per month. It is recommended to choose an app that supports PDF or Excel export and allows adding notes to each trip.
Frequently Asked Questions
Is a digital logbook legal in Saudi Arabia?
How much can be saved annually in Saudi Riyals?
Can I use a free app for a digital logbook?
Frequently Asked Questions
Is a digital logbook legal in Saudi Arabia?
Currently, ZATCA has no explicit ruling accepting digital logbooks as a substitute for paper. However, they can be used internally for record-keeping. It is advisable to consult a tax accountant.
How much can be saved annually in Saudi Riyals?
According to the report, savings range from SAR 3,750 to SAR 11,250 per year, depending on business kilometers and tax rate.
Can I use a free app for a digital logbook?
Yes, but paid apps offer better features like automatic classification and unlimited reports. Free apps often limit the number of trips recorded per month.
Sources
- Auto Bild (DE) — So sparen Firmenwagen-Fahrer jedes Jahr Tausende Euro
