What do I do with the car if I end my business?

You can take over the car for your private use, sell it, export it, or have it scrapped. Read step by step what you can and must do with your car when you deregister your company with KVK. If you have an eenmanszaak, different rules apply than if you have a BV or VOF.

1: Check who is the owner of the car

Check your vehicle registration documents or visit mijn.rdw.nl to see whether the car is registered in your personal name as an eenmanszaak or in the name of a company, such as a BV or VOF.

2: Determine what you want to do with the car

Do you want to take over the car yourself, sell it, export it, or have it scrapped? There are different rules depending on the legal structure.

Eenmanszaak (zzp’er)

If your business is an eenmanszaak, your company car is always in your own name already. That is because this legal structure is not a legal entity. Even though the car is a company car for tax purposes, it is your property. So, if you decide to keep the car and use it privately when you end your business, you do not have to transfer ownership at the RDW. If you sell the car to another person or business, you do need to transfer the registration - to that person or business. 

BV, VOF or other legal entity

In the case of a BV or VOF, the registration number is usually registered to the company name. If you wish to take over the car privately or sell it to another person or company, you must transfer the registration via the RDW to your private name or the name of the buyer. Do this within 3 months of deregistering with KVK. After 3 months, you are no longer allowed to drive the car on the road under your company name.

If you no longer wish to use or sell the car, you can also choose to export or scrap it (in Dutch).

3: Complete the administration and taxes for the car

Again, what you need to do depends on your legal structure. 

Eenmanszaak (zzp’er)

In an eenmanszaak, the car is part of your business assets. When you end your business, you must:

• Calculate the book value of your car: what is the value of the car in your accounts? This is usually the sale price minus depreciation.
• Determine what the car is currently worth if you were to sell it, also known as the market value.
• Calculate the difference between the book value and market value as profit or loss.
• Settle VAT for the car if you have ever deducted it.
• If applicable, include any additional tax liability for the last period.

Read more about how VAT works when business assets are transferred to private use on the Netherlands Tax Administration website (in Dutch).

BV, VOF, or other legal entity

In the case of a BV or VOF, the car is owned by the legal entity. If you wish to transfer the car to yourself privately, the following applies:

• You purchase the car from the BV or VOF.
• The BV or VOF must pay VAT (in Dutch) on the sale.
• The proceeds of the sale and any book profit or loss are recorded in the company accounts.
• You acquire the car privately, but this is a business sale transaction.
• In a BV, this may have an effect on corporate income tax.
• In the case of a VOF, the distribution of profits/losses between partners also plays a role.

In short: for legal entities, the transfer is a real legal and administrative transaction, whereas for an eenmanszaak it is usually an administrative change.

4: Change the insurance, motor vehicle tax, MOT, and parking permit

Once you have transferred the registration number, you must also adjust or cancel the motor vehicle tax and car insurance. The obligations for motor vehicle tax and MOT are transferred to the new owner. Do you have a parking permit for the car? Do not forget to cancel this when the ownership changes.