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Company car and holiday

In case you run your own business and you drive a company car, then you already know to keep good track of the receipts related to the costs of the company car. That you need to have a petrol card, or pay the petrol from the company bank account card with which you also pay for the tax and have the invoice send to you in the company name. But what happens when you drive with your company car and your family to your holiday destination?

The answer is rather simple. You already pay to the tax office tax over a percentage of the company car for the private use (25%, 20%, 14% or 0%). The tax related to that percentage you pay for the fact that you also use the car for private use. Hence the costs you make during the holiday, qualify to be taken into account in the company bookkeeping. So please keep all the receipts of the petrol stations, toll booths, ferries, parking etc, as those costs reduce the companies result.

The VAT on the invoices you cannot reclaim in the Netherlands. So the full amount is regarded the cost.

The persons driving a company car and who do not pay for the private use of the company car, as they have made a declaration to the tax office that they never use the car for private use. Please do not use this car for your holiday. At the border you see camera’s, placed by the tax office, to check for company cars that do not pay for private use.

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