Random depreciation of environmental investments (VAMIL)
Do you have a business in the Netherlands and do you invest in environmentally friendly business resources? You may be able to use the Random depreciation of environmental investments scheme (Willekeurige afschrijving voor milieu-investeringen, VAMIL).
What is the VAMIL?
The VAMIL scheme means that you may write off 75% of the investment at a random moment. You write off the remaining 25% according to the regular rules (in Dutch). By writing off in a year that suits you best, you can achieve a liquidity or interest advantage and thus pay less tax.
The following costs are eligible for depreciation (in Dutch):
- purchase costs
- production costs, which are the costs for use of your own staff, materials from your warehouse, and activities by third parties under your direction. Environmental consultancy costs are also considered production costs
- modification costs and/or the cost of purchasing new components.
You can apply for the VAMIL scheme in addition to the Environmental investment allowance (MIA).
When do you qualify?
- Your company must be registered in the Netherlands, Aruba, Curaçao, St. Maarten, or the special Dutch municipalities Bonaire, St Eustatius, or Saba and be liable to pay tax in the Netherlands.
- You must invest in a business asset that is on the Environment List (Milieulijst, in Dutch). Does the code on the Environment List start with A, B, C, or F? Then random depreciation is possible for that asset.
- You have not used the business asset before.
- You invest at least €2,500 per year.
View the conditions on RVO's website.
How to apply?
If you wish to use this scheme, you must notify the Netherlands Enterprise Agency within 3 months of having purchased the business resource. You can also declare this investment in your tax return.