Can I deduct my car as a business expense?
Short answer
Yes, in two ways. If you use your private car for business, in 2026 you deduct €0.25 per business kilometre. If you put the car in your business, you deduct all car costs, but with more than 500 private kilometres a year you add a taxable benefit (bijtelling): usually 22% of the list price, and 18% up to €30,000 for an electric car.
Updated on · Reviewed by the tax advisers at Boekhoudvriend
Which option is more favourable depends on how much you drive for business and privately, the list price and your profit. An expensive car with many private kilometres is often better kept private; a van you mainly use for business usually belongs in the business.
Using your private car for business
You deduct €0.25 per business kilometre from your profit. This amount was increased from €0.23 with retroactive effect from 1 January 2026. Keep a mileage log with the date, address and purpose of each trip.
A car in your business
- All costs are deductible: depreciation, fuel, insurance, maintenance and road tax
- If you drive more than 500 kilometres a year privately, a taxable benefit applies
- In 2026 the taxable benefit is 22%; for a new electric car, 18% on the first €30,000 of the list price
- The percentage applies for 60 months from first registration
And the VAT?
For VAT, it also matters whether the car is in your business. For private use of a business car, you correct the VAT at the end of the year. We calculate that for you in your last VAT return of the year.
Sources
- Belastingdienst: taxable benefit for private use of a car 2026 (in Dutch)
- Belastingdienst: VAT and your car (in Dutch)
This answer is general information, not personal advice. Your own situation may work out differently, so feel free to ask our team.