Car expenses

Pay attention; the information in this article may be outdated. For more recent knowledge and advice about the Dutch fiscal regulations concerning the costs of your (company) car, click here.

Are company car expenses deductible?

If you purchase a car for your enterprise, you can deduct the expenses and purchase as preload, according to the general rules for VAT. All other business expenses (for example costs for gas) regarding your car are also VAT deductible.

What if I also use the car privately?

For the calculation of the deduction of the VAT refund,  you divide the Vat refund in a deductible part for business travel and the non-deductible part for private travel. Because this is hard to enforce in practice, you can apply the fictitious car expenses.

What are the fictitious car expenses?

This means that if you use your company car for more than 500km a year privately, you must regard 25% of the catalogue value as a private part. It is not the catalogue value that applies economic value  if the car is older than 15 years. 35% of the value in the economic traffic must be subtracted as the private part. Over this amount you are still obligated to pay VAT.

When is a car considered to be part of the business capital and when is it part of the private capital?

If the car has not been used for more than 500km privately, then the car is considered to be part of the business capital automatically. You can choose whether you designate the car as private or business capital if you use your car for more than 500km privately. When the choice has been made this is usually irreversible.

When is a car considered to be part of the business capital and when is it part of the private capital for the turnover tax?

you can choose whether you designate the car as part of the business capital or part of your private capital if you use a car in part of fully for the benefit of an enterprise. The choice you have made for the income tax is not important in this matter.

Using your private car for the enterprise. What expenses can I charge to the enterprise?

For every kilometre you drive for company purposes, you can deduct €0.19 from the profit. This has no further influence on the amount that you claim from your client. For more information or any other questions, please do not hesitate to contact us at info [at] lupacompany.com.