Business car and no tax addition

When driving a business car, the tax authorities assume in the first day that this car will also be used privately, and the employer has an obligation to deduct a fiscal addition. If you are not going to use the business car privately, you must provide a declaration to the tax authorities yourself.

In this blog we will give you information about different statements concerning taks addition.

Declaration no private use car
When a car from the employer is offered to you, you can choose if you’ll drive this car privately or not. By using the statement ‘no private use car’ (Verklaring geen privé gebruik auto) no tax addition is deducted by your employer. You are responsible to provide this declaration to the tax authorities and a copy of this declaration to your employer. If anything changes, you are reponsible to report this.

Travel registration
Because you have submitted the declaration to the tax authorities you are obliged to keep track of the kilometers driven. Data must be recorded per trip, including: the brand, type and license plate of the car
the period
date per trip
start and end position of the odometer
arrival and arrival address of outward and return journey
route if it is not usual
nature of the ride: private or business
if extra kilometers are made with a business trip for private purposes

You are allowed to drive 500 kilometers privately per calendar year, but you must also register these kilometers in a trip registration. On the website of the Tax Authorities you can find the extensive information about this. The trip registration can be tracked in different ways, via a Blackbox system, Track & Trace system, via an app of manually. You can submit this trip registration to the employer.

Only business use van

If you use a van from your employer for your business, the employer is obliged to keep tax addition. If you use this car only for business purposes, the fiscal addition may be omitted. For delivery vans this is called the Declaration single routine use (Verklaring uitsluitend zakelijk gebruik bestelauto).

You are not obliged to keep track of the kilometer registration with this declaration. However, you must store documentary receipts such as work orders, appointments and other items that the delivery van is only used for business kilometers.

The tax authorities can always exercise ex post control, so make sure you have your administration in order. There is a statutory obligation of 7 years to keep the data. If your employer uses an automatic journey registration, then the employer is responsible.

More information can be found on the website of the tax authorities.