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Car: business or private?

Is it better to buy a car for business or private?

Do you want to buy a car and use it for both business and private purposes? Consider in advance whether you can buy the car for business or privately. After all, it is a decision that you make for a number of years and that has many consequences. Read more about the various advantages and disadvantages of private or business.

Private (also for business use)

Do you use a car that you bought privately, also for business purposes? Then you can calculate the ratio between business use and private use with the help of a kilometer registration. We use the same tool to calculate whether that business use relates to taxed or exempt turnover.

Business (also private use)

If you register a car in the name of your company, you may deduct all costs from the tax. For example, your costs for fuel, parking, insurance, maintenance and depreciation are business. Keep in mind that you must have a proof of payment in the form of a receipt or invoice for (almost) everything. This applies in any case to all costs that include VAT, such as petrol, repairs, parking in parking garages, etc. In the case of insurance, you often do not receive a receipt. Read here what to do.

Do you drive more than 500 kilometers a year privately? Then you will have to deal with a private addition. You then have to pay VAT for private use. The value of the car forms the basis for the settlement of private use. The addition is often lower for environmentally friendly cars (Dutch only), but also for young timers. A young timer (a passenger car older than 15 years) is interesting for tax purposes because you pay an addition on the current market value of the car and not on the catalog value. We do these calculations for you. All you have to do is enter the catalog value and your kilometers.

Current or catalog value in The Bookie Webapp

You state this value as soon as we prepare annual statements and your income tax return is made.

Catalog value
According to the tax authorities, the list price is the official new price of the (delivery) car that applies on the date that the registration number part 1 was issued. This price includes:

  • VAT
  • bpm (Dutch for tax on passenger cars and motorcycles)
  • accessories fitted by or on behalf of the manufacturer or importer before issue 1 of the registration number

Current market value: cars older than 15 years
If a car is older than 15 years, the economic value of that moment applies. The list price is therefore irrelevant for these older cars. If your car 'celebrates its 15th birthday' during the year, you may be calculating part catalog value and another part current market value.

by Mari Last update: 26 Jan, 2021