You drive business kilometres in your own car or a rental car

You may offset €0.19 per kilometre against your revenue for business trips made in your own car or a rental car. You may not deduct the VAT (btw) on the purchase price of the car, but you may deduct the VAT on repair and maintenance costs on condition that you take account of private use of your car.

You drive business kilometres in a company car

Your car is part of the business assets and all motoring expenses are chargeable to your business. You may offset the costs against your revenue on condition that you take account of private use of the car. If you buy the car especially for your business, you may deduct the VAT on the purchase price. If you already owned the car before you started using it for your business, you may not deduct the VAT on the purchase price. You may deduct the VAT on the repair and maintenance costs, on condition that you take account of private use.

You drive business kilometres in a leased car

A leased car is not part of the business assets of your business, but the costs are chargeable to your business. You may offset the costs against your revenue, on condition that you take account of private use of the car. You may also deduct the VAT charged to you by the leasing company.

Your employee drives business kilometres in his own car

You may pay your employee an allowance free of tax and social security contributions of no more than €0.19 per kilometre. You may also pay your employee this allowance for commuter travel. You may not deduct the VAT on the purchase price or repair costs of this car.

Your employee drives a company car

If your employee drives more than 500 kilometres per year for private purposes, this private use will be taxable as wages in kind. This means that you must add a percentage of the value of the car to the employee’s wages. You then pay wage tax on this amount. You may offset the costs of the car against your revenue. You may also deduct the VAT on these costs, on condition that you take account of private use of the car.

Source:

Contact the Tax and Customs Administration via our Information Desk
Call +31 55 538 53 85
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