Ireland
Tesla Mileage Logbook & BIK Rules in Ireland: What Revenue Expects for Electric Company Cars
Yes. The business-versus-private mileage obligation applies fully to a 100% electric Tesla in Ireland. Revenue ties your tax directly to proven business kilometres, and a battery-electric car (0g/km CO2, Category A1) still needs a contemporaneous logbook to set your Benefit-in-Kind, apportion motor expenses and support VAT recovery. Being electric lowers the rates you pay, and you must still record and prove every business journey.
Last reviewed: 25 October 2026 (tax year 2026)
Who is concerned?
The rules apply to company-car drivers (and directors) charged Benefit-in-Kind as notional pay, whose BIK band is set by their annual business kilometres; self-employed sole traders and partnerships claiming motor expenses and capital allowances, who can only deduct the business proportion; and any VAT-registered business seeking partial VAT recovery on a qualifying passenger vehicle or on electricity used for business charging. Employers calculate and report the BIK; the employee must supply the mileage records.
For your electric Tesla
For a company car, an electric Tesla emits 0g/km of CO2, placing it in the most favourable band (Category A1 for 2026). The taxable benefit still swings with your proven business mileage: it falls from 15% of Original Market Value (0–26,000 business km) to 12% (26,001–39,000), 9% (39,001–48,000) and just 6% above 48,000 business km. Before that percentage is applied, an EV's OMV is first reduced by €10,000 (the reduction for categories A1 to D) plus a €20,000 EV-specific relief for 2026 (€30,000 in total). That total falls to €15,000 in 2027 (€5,000 plus €10,000) and €2,500 in 2028, as Budget 2027 (6 October 2026) did not extend the EV relief. Drivers with low business kilometres can also claim a 20% reduction of the cash equivalent, but only if they travel between 8,000 and 24,000 business km, work at least 20 hours per week, spend at least 70% of working time away from base, and keep a logbook.
What to record
- ✓Date of each journey.
- ✓Start and end location (from / to).
- ✓Distance travelled, in kilometres.
- ✓The business reason or purpose of the trip.
How to stay compliant
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1
Log every journey as you drive
Capture the date, from/to, distance in kilometres and business purpose of each trip contemporaneously: Revenue expects a live logbook as evidence. A year-end reconstruction is weak and easily challenged.
-
2
Keep a running business-kilometres total
Your annual business-km figure sets your BIK band, your self-employed expense apportionment and your VAT business-use test. Track the business-versus-private split continuously so you can prove which band you fall into.
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3
Export and retain for six years
Produce a clean, timestamped logbook for your employer, accountant or a Revenue audit, and keep all supporting records for six years so you can meet Revenue's look-back.
Weak or missing records default you to the worst outcome. Revenue may treat 8,000 km as private, the 20% low-business-kilometres BIK reduction becomes unavailable, and more BIK tax is charged. For the self-employed, the private element of motor expenses and capital allowances is disallowed and added back. Reclaimed VAT is clawed back if 60% business use is not met or evidenced. On an audit, under-declared BIK or over-claimed expenses and VAT lead to additional tax plus interest and penalties, and records must be produced across a six-year look-back.
mileage logbook, Benefit-in-Kind (BIK), notional pay, business kilometres, Original Market Value (OMV), cash equivalent, CO2 Category A1 (0g/km EV), apportionment of motor expenses, qualifying passenger motor vehicle (up to 20% VAT recovery), six-year retention
Frequently asked questions
Does my electric Tesla still need a mileage logbook in Ireland?+
Yes. Being a 0g/km EV lowers your BIK rate (Category A1, from 15% down to 6% of OMV), and the obligation remains: you still need a contemporaneous logbook to prove business kilometres for BIK, motor expenses and VAT recovery.
Can I reclaim VAT on the electricity used to charge my Tesla for business?+
VAT on electricity used to charge an EV for business is recoverable, apportioned by your business-versus-private mileage split. The same logbook that supports your BIK also substantiates this recovery. An employer generally cannot recover VAT where an employee charges a company car at home.
What happens if I cannot prove my business mileage to Revenue?+
Revenue lets your employer assume 8,000 km are private, and the 20% low-business-kilometres BIK reduction cannot be claimed without a logbook. For VAT, up to 20% recovery on a qualifying passenger vehicle requires at least 60% business use, tested over a two-year period. If that business use is not proven, the recovered VAT is clawed back.
Based on Revenue guidance on private use of employer-provided vehicles, Civil Service motor travel rates, motor expense deductions and VAT on qualifying passenger vehicles. This page is for information only and does not constitute tax advice.
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