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Taxes and deductions for company cars

This information is provided by

Tax and Customs Administration, Belastingdienst | Statistics Netherlands, CBS

There are different types of expenses you make for your company car. There are motor vehicle taxes, such as mrb, bpm, and bzm. And there are costs for using your car, and for its upkeep. You may deduct some of these expenses from your income tax. And you may deduct VAT for some expenses if you use the car for your business.

Insurance premiums

Your car has to be insured against third-party liability (WA, Wettelijke Aansprakelijkheid). You can take out insurance against damages to your own car with a casco insurance. You may deduct insurance costs from your (corporate) income tax if you mainly use your private car for your business. Mainly in this context means if your private use of the car amounts to fewer than 500 kilometres per year. You may also deduct insurance costs from your income tax if you drive a company-owned car.

Fuel

Your car needs fuel. The type of fuel determines how much motor vehicle tax you pay (mrb). Which type of fuel is most cost-efficient for you depends on, among other things, how many kilometres you drive per year. You can get more information about this from the ANWB (The Royal Dutch Touring Club). Fuel costs may be deductible from your (corporate) income tax, depending on if you are using your private car for your business, or driving a company car. If your business is allowed to deduct VAT, you may deduct VAT on fuel costs made for the business use of your car.

Maintenance and repairs

Every car needs maintenance, and sometimes repairs. Your car may need to undergo a Periodic Technical Inspection or PTI (APK in Dutch) once a year. Maintenance and repairs may be deductible from your income tax. This may be the case if you use your private car for business purposes, or if you drive a company vehicle. If your business is allowed to deduct VAT, you may deduct VAT on these costs made for the business use of your car.

Leasing costs

Leasing means you rent a car from a leasing company for a certain period of time and for a certain number of kilometres. If you lease a car privately and use it for your business, or if you lease a company car, you may be able to deduct the costs from your income tax. If your business is allowed to deduct VAT, you may deduct VAT on these costs made for the business use of your car.

Motor vehicle tax (mrb)

Does your business own one or more motor vehicles (a car, van, motorcycle, trailer, or truck)? You will have to pay motor vehicle tax, mrb (motorrijtuigenbelasting). The Dutch Tax Administration will send you an assessment automatically. You can calculate how much mrb you have to pay yourself (in Dutch).

Bpm: private vehicle and motorcycle tax

If you buy or import a car, a van, or a motorcycle, and have it registered at the Netherlands Vehicle Authority RDW for the first time, you must pay private vehicle and motorcycle tax (bpm, belasting op personenauto’s en motorrijwielen).

Heavy vehicle tax (bzm)

Do you drive a truck on the motorway? Besides paying mrb, you will probably also have to pay heavy vehicle tax, bzm (belasting zware motorrijtuigen). The tax is levied on trucks that carry only goods and have a maximum permitted weight of 12,000 kilograms (circa 26,000 lbs) or more.

Purchase costs and amortisations

You may deduct investments you make for your company, that last for more than 1 year and cost over € 450.-, from your income tax. A car is such an investment. You do not deduct all the costs at once, but over a period of a number of years. This is called amortisation or depreciation. You list the investment in your tax return under ‘afschrijving’.

Statistics: company car

Number of cars registered to a company or institution.

This information is provided by

Tax and Customs Administration, Belastingdienst
Statistics Netherlands, CBS
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