TL;DR
You can reclaim VAT on car costs if you use the car for VAT-taxed business. If you also drive privately and don’t keep a mileage log, add a private-use VAT correction in your last VAT return of the year:
– Business car on balance sheet: forfait 2.7% of catalog price (incl. VAT & BPM), from year 5 1.5% or 1.5% if no VAT was deducted on purchase (e.g., margin car).
– Private car used for business: typically correct with 1.5% if you didn’t track actual use.
Keep invoices, split costs correctly, and don’t forget exempt turnover adjustments.

Pick your situation (this decides the rules)

• A. Business car (auto van de zaak)
  Car is on your company balance sheet.

  • Purchase VAT reclaimable (if bought with VAT and used for VAT-taxed turnover).

  • Running costs VAT reclaimable.

  • Private use? Year-end correction (forfait or mileage-based).

• B. Private car used for business (privéauto zakelijk)
  Car stays private.

  • No VAT reclaim on the purchase.

  • VAT on running costs (fuel/maintenance) reclaimable in proportion to business use.

  • Year-end correction if you didn’t track actual use.

Two ways to handle private use

• Method 1 — Actual use (mileage log)
  Track business vs private km. Reclaim VAT proportionally; no forfait needed.

• Method 2 — Forfait (no log)

  • Business car: 2.7% of catalog price; from year 5 1.5%, or 1.5% if you didn’t deduct VAT on purchase.

  • Private car: 1.5% of catalog price.

  • Apply in the final VAT return of the year (prorate if you owned/used the car part-year).

Note: If part of your revenue is VAT-exempt, reduce both your reclaims and corrections proportionally.

What VAT can you actually reclaim?

• Purchase VAT

  • Business car: yes (if invoiced with VAT and used for VAT-taxed activities).

  • Private car: no (car isn’t a business asset).

• Running costs VAT (fuel, maintenance, certain accessories)

  • Reclaim the business portion; correct for private use if needed.

• Costs without VAT
  BPM, road tax (MRB), many insurances → no VAT to reclaim.

• Leasing
  Operational vs financial lease may differ in accounting, but private-use correction still applies.

Worked mini-examples

• Example A — Business car, no log (standard case)
  Catalog price €45,000 (incl. VAT & BPM).
  Forfait = 2.7% × €45,000 = €1,215 VAT due in your last return.
  From year 5 onward → 1.5% (= €675). Prorate for partial years.

• Example B — Private car, no log
  You reclaimed VAT on fuel and maintenance during the year.
  Year-end correction = 1.5% × catalog price.

• Example C — Mixed activities (partly VAT-exempt)
  If 30% of your turnover is VAT-exempt, reduce your VAT reclaims/corrections accordingly (apply only to the VAT-taxed part).

Special cases you should know

• Margin car or bought from a private seller: no purchase VAT → use 1.5% forfait for business-car scenario.

• After 4 years: business-car forfait usually drops from 2.7% to 1.5% starting in year 5.

• KOR (small-business scheme): if you opt in, you don’t file VAT and can’t reclaim VAT; prior car-VAT may require revision within the 5-year window.

• Part-year ownership: prorate the forfait by months the car was at your disposal.

Veelgestelde vragen

Is VAT on business overnight stays/travel relevant here?
Separate topic. Here we only address car-related VAT (purchase and running costs). Travel/overnight VAT follows its own rules.

Can I deduct VAT on fuel if the invoice is in my personal name?
Prefer invoices to the business. If that’s not possible, keep a consistent method to support business use and link payments from the business.

What if I sometimes rent a car?
VAT on rental invoices can be reclaimable for the business portion; no catalog-price forfait, but still adjust for private use if any.

What documentation should I keep?
Original invoices, mileage logs (if using actual-use method), and a simple calculation showing how you arrived at the correction.

Mini-checklist (do this, stay sane)

• Decide: Business car vs Private car used for business.

• Choose method: Mileage log (precise) or Forfait (simple).

• Keep all VAT invoices (fuel, maintenance, accessories).

• If you have VAT-exempt turnover, adjust proportions.

• Post the correction in your last VAT return of the year.

• Considering KOR? Model the impact before opting in.

Voor accountants: 5 control points

1. Asset classification (balance sheet vs private) and purchase-VAT treatment.

2. Method chosen (log vs forfait) and documentation.

3. Catalog price basis and proration for part-year.

4. Exempt-turnover proportion applied consistently.

5. Year-end posting (final return) + reconciliation to fuel/maintenance VAT during the year.

Conclusie

Reclaiming car-VAT is doable: pick the right scenario, choose log vs forfait, keep invoices tight, and book the year-end correction on time. That’s how you avoid surprise VAT bills and messy cleanup in January.

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