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Consequences private use
When you as business owner drive a company car, the car is part of your business assets. You must settle any private use with the car costs of your company.
Consequences private use for employees
If your employee uses a company car for private purposes, you must add a sum to the their wages before tax (private use addition). After all, they benefit from this private use. The addition comes down to a certain percentage of the value of the car, depending on the CO2 emission of the car involved.
Exemption: annual 500 kilometre limit
If your employee's private use of the company car does not exceed the annual 500 kilometre limit, no addition is required. However, they must be able to prove this with complete records of all kilometres travelled with the car.
Consequences for VAT
If the car has been available to you free of charge, you pay VAT on the actual private use of the car. For this purpose you must keep a kilometre record. If you do not keep such a record, you must set the VAT with regard to the private use at 2.7% of the list price of the car, including VAT and private motor vehicle and motorcycle tax (bpm).
Designated contact company car
You can submit questions about the private use of a company car in writing to the National Car Coordination Centre (Landelijk Coördinatiecentrum Auto), Postbus 843, 7600 AV, Almelo or call 0800- 0543.
Private use of a delivery van
If you or your employee only use a delivery van for business purposes, you must declare this to the Dutch Tax and Customs Administration (Belastingdienst) with the Declaration solely business use delivery van (Dutch). It is not necessary to keep a kilometre record. If you want to settle the VAT on the basis of the actually covered kilometres, in some cases you do have to keep a kilometre record.
Private use of a driving school car
Driving school owners who drive less than 500 kilometres privately per year with their driving school car, must include the car in their business assets. If they drive more than 500 kilometres privately per year, they have to decide whether they consider it to be part of their private assets.
If your driving teacher drives less than 500 kilometres privately per year with your driving school car, they can keep a simplified kilometre record. By doing so, they prevent an addition for tax purposes due to private use of a company car.
Private use of a company car in the automobile sector
Employees in the automobile sector often use company cars alternately. The (Dutch-language) ‘Guide to Added Amounts for Private Use of a Company Car in the Automobile Sector' describes how employers in the automobile sector can determine the additions for private use of a company car.