The use of a company car for private purposes is taxable unless you prove that you have not exceeded 500 kilometers driven privately during the calendar year. Of course, you must keep accurate “mileage” to prove it.
If your private routes exceed 500 kilometers per year, the Tax Administration will ask you for a surcharge, called “Bijtelling.”
The amount of Bijtelling (2024) depends on the car’s list value, CO2 emissions and registration date:16% – for electric vehicles only up to €30,000, and above that already 22%
22% – for internal combustion vehicles
Important! If you use a car older than 15 years, the amount of Bijtelling (2024) is 35% of today’s market value of the car, not its original price.
As compensation for Bijtelling you have the opportunity to deduct most of the costs of using the car from your income tax (BTW).
If you choose this form of using a company car, you must also adjust the recovered BTW quarterly to the declared costs associated with the car.
