Most companies in the Netherlands reimburse the costs of travel for their staff. Even if it is not compulsory. Sometimes they provide an allowance or offset the costs against the tax. What rules apply depends on the employee’s situation.
Employees driving their own car
Employees driving their own car may get a kilometre allowance for daily travel between work and home. The allowance is set by the Tax Authority. It is free of tax and social security contributions of no more than €0.19 per kilometre and no more than 214 days per year.
Driving a leased car
A leased car is a cost that is chargeable to your business, not part of your business assets. You may offset the costs against your revenue, on condition that you take into account of private use of the car. You may also deduct VAT charges to you by the leasing company.
Driving a company car
A company car is part of business assets and all motoring expenses are chargeable to the business. For example, if you buy the car for your business, you may deduct the VAT on the purchase price. However, if you already owned the car before you started using it for your business, you cannot deduct the VAT on the purchase price. Though you are allowed to deduct the VAT on the repair and maintenance costs, on condition that you take account of private use.
Do you want to make the most out of your employment abroad? Reach out now! Whether it is payroll, tax optimisation, work permit or consultation you need, we will find the best solution for you.
