Company car or private?

Company car or private car: what is the difference?

For income tax purposes, you need to determine whether the car forms part of your business assets (company car) or your private assets (private car). You cannot always choose for yourself.

• Do you use the car for business purposes 90% of the time or more? If so, the car must be classed as a business asset.
• Do you drive more business kilometres than private kilometres, and no more than 500 kilometres per year for private use? In that case, the car must also be classed as a business asset.
• Do you use the car for private purposes 90% or more of the time? In that case, the car must be classed as a private asset.

In other situations, you can make the choice yourself.

Company car

If you have a company car, it is a business asset. In that case, you may deduct the business-related car expenses from your profit, subject to certain conditions. Car expenses include, for example:

• depreciation
• maintenance and repairs
• fuel or electricity
• insurance
• vehicle tax
• parking charges

Are you buying a car for your business? In that case, you do not deduct the purchase cost in one go. You depreciate the car over its useful lifetime. Are you leasing a car for business purposes? Depending on the type of lease, you may be able to deduct costs. With a finance lease, the car is generally shown on the balance sheet and you depreciate it. With an operational lease, you treat the lease payments as expenses.

Private use addition

Do you also use your company car for private purposes? If so, you must add an amount to your business income: the private use addition (bijtelling). For cars first registered in 2026, the private use addition is 22%. For certain fully electric cars, the rate is 18% on the first €30,000 of the list price. The rate is 22% on the amount above that.

Calculate your private use addition (in Dutch)

Trip registration

If you drive no more than 500 kilometres privately in a year, you do not have to pay any private use addition. You must, however, be able to prove that you remain below this limit. For example, by using a trip registration system.

The ‘youngtimer’ scheme for cars over 16 years old

For cars over 16 years old, a private use addition of 35% of the market value will apply in 2026. This is the value the car has at that time.

From 2027, this scheme will only apply to cars that are 25 years old or older.

Using a private car for business purposes

Do you keep the car for private use? In that case, you cannot deduct the actual car costs from your profit. For business journeys, in 2026 you may deduct 25 cents per business kilometre from your profit. This amount covers all car costs. Therefore, you cannot deduct costs such as fuel, insurance, and maintenance. For income tax purposes, commuting to and from work is considered a business journey.

Different rules apply to turnover tax

You make a separate choice regarding VAT. It is therefore possible that, for income tax purposes, you opt for a company car, whilst for VAT purposes you opt for a private car. Or vice versa. This choice affects the total cost of your car and whether a company car or private car is the best option for your business.

• Do you also use a company car privately? If so, you may, subject to certain conditions, make a deduction for VAT on the purchase, maintenance, and use of the car. For private use, you must apply a VAT adjustment. Commuting between home and work comes under private use for VAT purposes.
• Do you use a private car for business purposes? If so, subject to certain conditions, you can deduct the VAT on maintenance and use to the extent that you use the car for taxable turnover. You cannot deduct VAT on private use. Commuting between home and work comes under private use for VAT purposes.

Should you buy or lease a car?

You can buy or lease a company car. You can also buy or lease a private car. So whether you buy or lease does not in itself determine whether a car is for business or private use.

The tax rules for a business lease car depend on the type of lease you choose. With a finance lease, the car is generally shown on the balance sheet and you depreciate its value over a number of years. With an operational lease, you treat the lease payments as expenses.

Putting a car in your company’s name

Are you buying a car for your business? If you have a BV (private limited company), a VOF (general partnership), or a CV (limited partnership), you can register the vehicle in the company’s name. In the case of an eenmanszaak (sole proprietorship) or a maatschap (professional partnership), the vehicle can only be registered in an individual’s name.

This registration of the vehicle does not determine whether the car is classified as private or business assets for income tax purposes. That tax classification is a separate matter.

Delivery vans and ‘grey’ vehicle registration

You can also choose a delivery van with a ‘grey’ vehicle registration. For this you pay a lower rate of motor vehicle tax. The rules for vans are partly different from those for passenger cars.

The private vehicle and motorcycle tax (BPM) business scheme for new vans has been abolished since 1 January 2025. If you buy a new van, you will therefore have to pay BPM. A transitional scheme (in Dutch) may apply to certain older vans.

A van used exclusively for business

Do you only use the van for business trips? Then fill in the declaration Uitsluitend zakelijk gebruik bestelauto (in Dutch, 'Van used exclusively for business') via Mijn Belastingdienst. Then you no longer need to keep a record of your trips.

Temporary reduced motor vehicle tax rate

A reduced motor vehicle tax rate may also apply to a company van if you meet the conditions. From 1 July 2026 to 1 January 2027, you will temporarily pay half the standard motor vehicle tax (MRB) under the business rate (in Dutch).

Investment credit

Are you buying a delivery van for your business? If so, subject to certain conditions, you may be able to claim the small projects investment credit for that investment. The KIA does not apply to ordinary passenger cars that are not intended for commercial use.

Company motorbike

You can also use a motorbike for your business. Under certain conditions, the costs are then deductible from your profit. These include, for example, the purchase price, depreciation, maintenance, and insurance.

There is no fixed private use addition for a motorbike, as there is for a car. Do you also use the motorbike privately? If so, you must add an amount for private use to your profit. This amount is based on the actual private use and the actual costs of the motorbike.

Do you use a private motorbike for business journeys? If so, in 2026 you may deduct 25 cents per business kilometre from your profit.