Company Car in the Netherlands 2026: Addition Rules, Private Use and Declaration

What is the company car addition (bijtelling) and how does it work in 2026?

If you are an entrepreneur in the Netherlands and use a company car for private purposes, you are subject to the bijtelling – a taxable addition to your income. This addition is calculated as a percentage of the car’s original catalogue value. In 2026, the following rates apply:

The addition is based on the original catalogue price of the vehicle, including VAT and BPM (Dutch purchase tax). It does not matter whether you bought the car new or second-hand – the catalogue value remains the same.

How is the company car addition calculated? A practical example

Suppose you drive a regular company car with a catalogue value of €40,000. The calculation is straightforward:

• Addition: 22% × €40,000 = €8,800 per year
• At a marginal tax rate of 36.97%, you pay: €8,800 × 36.97% = €3,253 in additional tax per year

Driving a fully electric car with a catalogue value of €50,000? Here is how it works:

• 16% on the first €30,000 = €4,800
• 22% on the remaining €20,000 = €4,400
• Total addition: €9,200 per year

When can you apply for a “No Private Use” declaration?

If you use your company car for fewer than 500 private kilometres per calendar year, you do not have to pay the addition. To qualify, you must request a “Verklaring geen privégebruik” (No Private Use declaration) from the Dutch Tax Administration (Belastingdienst).

Key conditions to keep in mind:

• You must maintain a complete mileage log (rittenregistratie) proving you stay below the 500 km private threshold.
• Commuting between home and work counts as business use – it does not count towards your 500 km limit.
• The declaration applies per calendar year and must be requested in time.
• During an audit, you must be able to present your mileage log to the tax authorities.

What should your mileage log contain?

A proper mileage log must record the following details for each trip:

• Date of the trip
• Odometer reading at the start and end
• Departure address and destination
• Route taken (if different from the shortest route)
• Business purpose of the trip
• Whether the trip was for business or private use

Several apps and digital tools can automate your mileage tracking. Ask us which solution best suits your situation.

What happens if your declaration is incorrect?

The Belastingdienst actively audits company car usage. If an inspection reveals that you drove more than 500 private kilometres while holding a No Private Use declaration, the consequences are significant:

• Back taxes on the addition you should have paid
• A default penalty of up to 100% of the back taxes
• Tax interest on the amounts owed
• In cases of intent or gross negligence: a possible penalty surcharge of up to 100%

It pays to keep your records in order. Not sure whether the declaration is right for you? Let us work it out for you.

Company car and VAT: what you need to know

Besides income tax, private use of a company car also affects your VAT obligations. If you use the car privately, you must apply a VAT correction for private use. In 2026 the deemed correction is 2.7% of the catalogue value (including VAT). You report this amount in your final VAT return of the year.

Electric vehicles: extra benefits for entrepreneurs

Beyond the lower 16% addition rate, an electric company car offers additional advantages:

• No BPM (purchase tax) on acquisition
• Lower road tax (MRB) – EVs were fully exempt through 2025 and enjoy significantly reduced rates in 2026
• Environmental investment deduction (MIA) and Arbitrary depreciation of environmental investments (Vamil) may apply
• Lower fuel costs when charging at home or the office

Want to know whether going electric makes financial sense for your business? Explore our services for entrepreneurs or get in touch.

Let MOJKA Finance help you with your company car statement

Whether you need to apply for a No Private Use declaration, require assistance with your mileage log, or want to calculate which type of car is the most tax-efficient for your situation – our team is ready to help. We know the rules, we speak your language and we make sure your records are in order.

Complete the company car statement now →

Prefer personal advice first? Contact MOJKA Finance in Rotterdam. We are happy to assist you in Dutch, English or Polish. As your expat accountant in Rotterdam, MOJKA Finance is here to help – contact us for a free consultation.