How to buy or sell a company bike or car in The Netherlands?

Are you buying or selling a means of transport for/from your company? This has  consequences for the income and turnover tax return. Therefore, please inform your accountant in time.  Below we explain what it is fiscally like in the Dutch tax system to buy or sell a business bike or car.

Buying a company bike

Do you cover at least 10% of your business kilometers by bike? Then you can state the purchase (and repairs and maintenance) as business expenses. You then need to include this in your VAT return and Income tax. If, in addition to the kilometers for work , you also ride the bike privately, you must pay an addition, called ‘bijtelling’.  In 2022, this addition is 7% on the recommended retail price of the bicycle and accessories (including VAT). You then write off the bike - provided it costs € 450 or more - in 5 years.

As an employer, you can purchase a bicycle for your employees for business purposes. But here too the above rule applies; if staff members also use the bike privately, they will have to pay an addition. You then pay a small amount of extra wage tax for your employee every month. As an employer, do you not want to deduct the addition from the salary, but do you want to take care of it yourself? That's possible. By using the free space in the work costs scheme , your employee does not have to pay an addition on the bicycle.

Buying a company car

As an entrepreneur, you can add a car that you use for business purposes to your company assets. You then have a number of options with regard to your car and the business. These possibilities have different consequences for the declarations. Of course, you choose the tax arrangements with which your (partly) business car is as advantageous as possible. In income tax, there are three options for the tax treatment of the car. Each option works slightly different. For each option, we have summarized the consequences in this text.

Please note: The introduction of zero emission zones from 2025 may affect the places where you may or may not drive your (non-electric) company car. Read here what the policy is in the coming years.

Selling a company bike

If you sell company goods, such as a company bicycle, you simply have to send out an invoice (including 21% VAT) to the buyer. Do you sell the bike above or below the book value? Then you make a book profit or loss. You have to pay for this in your tax return. Therefore, always forward the sale of a bicycle (or other second-hand assets that have not yet been depreciated) to your accountant in time.

Selling a company car

The sale of a company car must also be invoiced, and book profit or loss must be settled (see above). When you sell your company car, you must  ensure that the new owner transfers the company car to his or her name. As  a seller, it is  important that you receive a certificate of indemnification. If you do not have it, you  remainresponsible for the obligations associated with having a company car in your name.

Read more

Do you want to read more about the purchase of a company bike for your employees? You can do that here.  On this page, the Tax and Customs Administration provides  information about, among other things, a company car for entrepreneurs and employees and commuting. For questions about business transport, tax arrangements and tax returns, please feel free to contact us.