As an entrepreneur, you face many choices, and your car is one of them. Do you use your private car for your business, or do you register a car as a company asset? This is a question that occupies many freelancers in the Netherlands. After all, you want to seize every opportunity to save costs, but at the same time, you need to follow the rules. Good news: a company car can be advantageous! But, as with many tax matters in the Netherlands, it’s not as simple as “book it and you’re done.” There are clear conditions you should meet.
In this article, we clearly outline the rules regarding a company car within the Dutch tax system. Kees de Boekhouder helps entrepreneurs daily to correctly process these matters in their accounting, ensuring you make optimal use of the tax advantages.
Registering a car as a company asset – what does that mean?
Registering a car as a company asset means that you book the costs of the car through your business. However, be aware that you may have to deal with ‘bijtelling’ (a private use addition) if you also use the car privately. This choice affects both your Income Tax (‘inkomstenbelasting’) and Value Added Tax (VAT, or ‘omzetbelasting’).
So, what exactly are business car expenses that you can deduct? Think of:
- Fuel
- Maintenance
- Insurance
- Road Tax (‘wegenbelasting’)
- Depreciation (‘afschrijving’, more on this below)
- Parking costs
What about ‘bijtelling’?
‘Bijtelling’ is the added tax liability for the private use of a company car. The Belastingdienst (Dutch Tax Authorities) views this as a form of ‘benefit in kind’ and adds this amount to your taxable income. The amount of the ‘bijtelling’ depends on the car’s catalogue value, its date of first admission and, for newer cars, its CO2 emissions.
These are the ‘bijtelling’ percentages for 2025:
- Standard ‘bijtelling’: 22% of the catalogue value.
- Electric Vehicle (EV): Calculate 17% over the first €30,000 of the list price, and 22% above that.
- Youngtimer (between 15 and 25 years old): 35% of the current market value.
‘Bijtelling’ directly influences the net benefit of having a company car. The higher the ‘bijtelling’, the less tax advantage you retain. It is therefore crucial to calculate this carefully before making a decision.
When is a company car more advantageous?
When is a company car more advantageous in the Netherlands? Here are the main factors that you should investigate in order to decide about this:
- You drive a lot for business: If you drive a significant number of business kilometres per year, it can be beneficial to register the car as a company asset. The exact amount depends on your specific situation and the car’s costs.
- You private use is limited: If you drive less than 500 kilometres privately per year with the company car, you do not have to pay ‘bijtelling’. This is the golden rule to avoid ‘Bijtelling’ and thus achieve the maximum tax advantage. Keep in mind that you have to maintain a registration of your private kilometres.
- You have a car with low ‘bijtelling’: This applies especially to ‘youngtimers’ (cars 15 years or older). For electric cars, the ‘bijtelling’ has recently not been low enough for it to be highly advantageous for business use.
- You want to deduct all costs: By registering the car as a company asset, you can deduct all car expenses, including depreciation, from your company’s profit. This can make a significant difference to your final yearly income tax assessment.
Also, be aware of all the rules regarding VAT. You can read more about this in this blog.
Company car or not? The decision.
The decision between a company car (‘auto op de zaak’) or a private car is personal and depends on your unique situation in the Netherlands. A company car can be tax-efficient, especially if you drive a lot of business kilometres and private use is limited. The rules surrounding ‘Bijtelling’ and deductible expenses are decisive here. Also, be sure to calculate the financial implications if you do not declare the car as a company car. In that case, you may deduct €0.23 per business kilometre (amount for 2025) from your profit. You can find more details on how this works in this blog.
To help you make an informed choice, here are some relevant questions to consider:
- How many kilometres do I drive for business?
- How many kilometres do I drive privately?
- What type of car do I have (make, model, year of manufacture, value)?
- Do I want to avoid ‘Bijtelling’?
- How long do I expect to be able to use the car?
- What deductible expenses do I anticipate incurring over those years?
- Do I want to use the simplified VAT correction for private use or do I want to keep track of my business kilometres?
Do you want to know what the smartest option is for your specific situation? With an accountant, you can be sure that you make the right choice and that everything is processed correctly with the Belastingdienst. Schedule a free introductory meeting with Kees de Boekhouder. We are happy to think along with you! If you want to do your own calculations, we recommend the calculation tool from the KvK (Chamber of Commerce).
FAQ
What are the advantages of registering a car as a company asset ('auto op de zaak')?
You can deduct all business car expenses, including depreciation, from your company’s profit. This can lead to a significant tax advantage.
What are the disadvantages of registering a car as a company asset?
The main disadvantage is the ‘bijtelling’ (private use addition) for private use, which affects your Income Tax. Also, the rules and administration are more complex when dealing with the Belastingdienst.
How exactly does 'bijtelling' work?
‘Bijtelling’ is an amount that is added to your income for the private use of a company car. The amount depends on the car’s list price, CO2 emissions, and age, as determined by Dutch tax rules.
When is a company car more advantageous than a private car in the Netherlands?
It is usually more advantageous if you drive less than 500 private kilometres annually, or if you have a car with a low ‘bijtelling’ (such as an electric car or ‘youngtimer’).
How many kilometres can I drive privately without 'bijtelling'?
If you drive less than 500 private kilometres per calendar year with the company car, you do not have to pay ‘bijtelling’ according to the Dutch tax rules. Keep in mind that you have to maintain a registration of your private kilometres.
Can I use my private car for business in the Netherlands?
Yes, you can. You may then deduct €0.23 per business kilometre (amount for 2025) from your profit. This is often simpler administratively, as you do not have to deal with ‘bijtelling’. It depends on the context which option is best for you.
