Vehicle expenses are strictly monitored by the Dutch Tax Authority (Belastingdienst). The deductibility depends on whether the vehicle is a business asset or a privately owned car used for business purposes.Ā Ā
š Business Asset Vehicles
If the vehicle is registered as a business asset, you can:Ā Ā
ā Deduct fuel, maintenance, insurance, depreciation, and other costs as business expenses.Ā Ā
ā Reclaim VAT on fuel and maintenance costs.Ā Ā
ā Private use is taxed (bijtelling) if the vehicle is used for private trips more than 500 km per year.Ā Ā
š Privately Owned VehiclesĀ
If you use your private car for business purposes:Ā Ā
ā You cannot deduct fuel, maintenance, or VAT as business expenses
ā Instead, you can deduct ā¬0.23 per business kilometer driven.
ā A detailed mileage logbook is required to prove business use.Ā Ā
How to Justify Business Use?Ā Ā
For business asset vehicles, keep:Ā Ā
- All invoices (fuel, maintenance, insurance, lease payments, etc.).Ā Ā
- A logbook of private trips if you drive more than 500 km privately per year.Ā Ā
For privately owned vehicles, keep:Ā Ā
- A kilometer registration (date, destination, purpose, and distance of each business trip).Ā Ā
- A list of clients and appointments proving the necessity of travel.Ā Ā
Summary of Deductibility
Vehicle Type | Expense Deduction (Income Tax - IB-aangifte) | VAT Deduction | Home-to-Work Travel (commuting) |
Business asset vehicle | ā Full deduction of fuel, maintenance, insurance, etc. | ā VAT can be reclaimed for business-use | ā Fully deductible |
Privately owned vehicle | ā ā¬0.23/km for business use | ā No VAT reclaim and keep those invoices separately | ā ā¬0.23/km deductible |
š” Important: If you use a business vehicle for private trips over 500 km per year, you will have to pay ābijtellingā (private use tax).Ā