Check how much added taxable income rate you will have to pay
Do you use your company car for private purposes for more than 500 kilometres per year? Then you must pay a private use addition (bijtelling, in Dutch). The addition for the private use of a car is a percentage of the list price.
Addition for the private use of an electric car
Do you drive a fully electric, hydrogen, or solar car? Cars with no CO2 emissions currently have a lower private use addition. Read more about the financial benefits of electric company cars.
Company car and VAT
For VAT purposes, you may choose whether your car is business or private. Even if you declare your vehicle as a company car for income tax purposes, you can keep your car private for VAT purposes (in Dutch). For example, do you choose to count the car as a private asset for VAT? If so, this does not automatically mean that the car also belongs to private assets for income tax purposes. Make sure your choice is clearly stated in your records.
Are you transferring your private car to the company? Then you are a customer and seller at the same time. As a result, you cannot deduct this purchase.
Correct your VAT return if you use your car privately
Do you also use your business car privately? Then you must correct the VAT deduction in the VAT return at the end of the year. This means you will have to pay VAT. You must keep good records of your trips. Also keep in mind that commuting is regarded as private travel for VAT purposes. Use the VAT and the car calculator for this (in Dutch).
If you do not keep a record of private car trips, the Tax Administration will calculate a standard percentage (in Dutch).
Deduct your car expenses from your profit
You can deduct all car expenses from your business profit. For example, maintenance, the periodic motor vehicle test (APK), parking costs, and motor vehicle tax. Do you also use the car privately? Then you can only deduct the costs for the part you use the car for business purposes.
Company car and income tax
If you do not drive more than 500 kilometres per year for private use, your car must be regarded as a company car. If you drive more than 500 kilometres per year privately, you may also choose to list your car privately. You can still drive it for business purposes, but different income tax rules apply.
Complete trip registration
With trip registration, you can prove that you have not driven more than 500 private kilometres per year. Then you do not have to pay any private use addition. RitRegistratieSystemen (in Dutch) is an example of this type of system. You can also use your own system. It must contain all the data needed for a complete trip registration.
Put the value of your company car on your business balance sheet
Do you choose to use your car for business purposes? Then put the purchase value on your company’s balance sheet. You can then deduct the car costs incurred and the annual amortisation, or deprication in its value every year. The amount that appears annually on the balance sheet is called the book value. Make sure the car is registered in your company’s name.
Leasing a company car
Do you want to lease a car for your business? Then you can consider these lease forms:
You lease a car and pay a fixed amount per month for using the car. The leasing company remains the owner. The car is not part of your business assets, so you do not put the value of the car on your balance sheet.
This is a form of credit with which you buy a car in your company’s name. You pay off the loan in instalments. Unlike with operational lease, with financial lease, you can put the car on your balance sheet. In most cases, this entitles you to consider depreciation and interest deduction.