Company car tax and your mileage log

The company car tax addition is a topic surrounded by misunderstandings. The key point: whether the addition applies to you and how it works out depends on your situation and on the rules of the Tax Administration. A mileage registration is not a switch that turns the addition off, but it can help substantiate your use.

What is the addition?

The addition is an amount added to your income in certain situations when you can also use a company car privately. The idea behind it is that private use of a business car can be a form of benefit. Exactly how the addition is calculated, which percentages apply and when it applies is set by the Tax Administration and can change over time.

What role does a mileage registration play?

If you believe you use a company car little or not at all privately, you want to be able to substantiate that. This is where a mileage registration comes in: it shows per trip whether it was a business, private or commuting trip. That creates an overview with which you can make private use transparent.

In practice a limit is often mentioned for the number of private kilometres per year below which the addition may be left out. Whether that limit applies in your case, and which conditions come with it, is set by the Tax Administration. A watertight registration can help substantiate that you stay below such a limit, but in itself offers no guarantee.

The declaration of no private use

A commonly used route is the declaration in which you state that you do not use a company car privately, or only to a limited extent. If you use such a declaration, the Tax Administration may ask you to show that this is correct. A watertight mileage registration is then often the means of proof. The precise workings, conditions and consequences are described by the Tax Administration; make sure you are well informed before making a choice.

Tips for a watertight registration

If you want to substantiate your use well, it helps to keep your registration complete and verifiable. In general terms you can think of:

• Recording every trip, including short ones, so no gaps arise;
• Making the start and end odometer readings add up;
• Noting per trip whether it was business, private or commuting;
• Recording deviating routes and the reason for them (such as a diversion);
• Updating the administration regularly instead of reconstructing it afterwards.

You can read which details are typically asked under the Tax Administration requirements. An app that records trips automatically can help reduce gaps and copy errors. RitGenie classifies trips automatically and keeps private and business apart.

No guarantees, but a clear overview

We deliberately avoid statements like "this guarantees you avoid the addition". Whether the addition can be left out in your case depends on more than a registration alone: your personal situation, the chosen tax route and the assessment of the Tax Administration all play a part. What a good registration does do is make your use transparent and substantiable. The tax assessment is best left to the Tax Administration or your adviser.

Frequently asked questions

What is the company car tax addition?

In the Netherlands, the addition (bijtelling) is an amount added to your income in certain situations when you can also use a company car privately. Exactly how it is calculated and when it applies is set by the Dutch Tax Administration. For your own situation, rely on the current information from the Tax Administration or your adviser.

Can a mileage registration avoid the addition?

A watertight mileage registration can help substantiate how much you drive a company car privately. Whether that means the addition can be left out depends on your situation and the conditions set by the Tax Administration. It is not a guarantee; present your situation to the Tax Administration or an adviser.

How many private kilometres am I allowed to drive?

In practice a limit is often mentioned for the number of private kilometres per year. Whether that limit applies in your case and which conditions come with it is set by the Tax Administration. Rely on the current information from the Tax Administration and consult your adviser if needed.

What is a declaration of no private use?

It is a declaration in which you state that you do not use a company car privately, or only to a limited extent. If you use such a declaration, the Tax Administration may ask you to substantiate that this is correct, for example with a watertight mileage registration. The precise workings and conditions are described by the Tax Administration.