Companies use both passenger and commercial vehicles for their work. Some find it difficult to distinguish between these two vehicles, which are ideal for carrying out their activities. They differ from each other in terms of transport and also in terms of transportation.

Difference in transport

For companies aiming at commercial, industrial or professional activities, it is suitable for them to use commercial vehicles, these vehicles with a weight that exceeds 3.5 tons are intended to transport goods. They have a maximum of 3 passenger seats.
Moreover, these seats are only in the front and the back is only for luggage. In contrast to passenger vehicles, which have no difference from private vehicles, their task is to transport people.
They come in various forms and can have several seats, i.e. the number of available seats is strictly more than 3. They can have a range of up to 5, which is not the case with utility vehicles whose number of doors does not exceed 2.
Finally, passenger vehicles use nothing but petrol and diesel. Thus the difference between the two lies in their capacity to transport people and goods.

Difference in taxation

In terms of taxation, commercial vehicles are given priority over passenger vehicles. The TVS does not concern them whereas it concerns passenger vehicles.
Then, after the purchase of commercial vehicles, the totality of the VAT is recovered, whereas for passenger vehicles only a part of the VAT on fuel is recovered, depending on the type of vehicle.
Commercial vehicles are also subject to VAT. Thus, they recover the full amount of VAT on their entire category of vehicle except for petrol vehicles which recover only 40%. The deduction of depreciation is in full for commercial vehicles and depends on the type of vehicle for passenger cars.