VAT on Cars in the Netherlands for Freelancers (2026)

Can you reclaim VAT (BTW) on buying or leasing a car as a freelancer in 2026?

Yes. In 2026, the standard Dutch VAT rate is 21%. A freelancer can reclaim input VAT (voorbelasting) on a car when Dutch VAT is charged and the car is used for VAT-taxed business work. VAT on purchase or lease, maintenance, and use can be reclaimed, but only for the share linked to taxed turnover. This matters because 21% VAT on a €30,000 purchase is €6,300.

Browse the [Knowledge Hub](/knowledge-hub) for more freelancer accounting guides. For car VAT, the first decision is whether the car belongs to business assets (bedrijfsvermogen) or private assets (privévermogen) for VAT purposes. That choice changes whether VAT on the purchase price can be reclaimed or only VAT on running costs. For how VAT returns work in practice, see the [VAT returns guide](/knowledge-hub/vat-returns-netherlands-expat-freelancer-guide/).

• Reclaim up to 100% of the VAT shown on the invoice if the car is used 100% for taxed work (for example 21% VAT).
• If business use is 60%, reclaim 60% of the VAT and treat the remaining 40% as non-deductible.
• If the freelancer has VAT-exempt turnover, reduce VAT reclaim using the taxed-share percentage (for example 60% taxed / 40% exempt).
• Apply the same taxed-use limitation to lease VAT: reclaim only the share linked to taxed turnover.
• If the car is also used privately, pay a private-use VAT correction in the last VAT return of the year.
• Keep supplier invoices that show the VAT amount; without VAT on the invoice, there is no VAT to reclaim.

How do you calculate the private-use VAT correction for a mixed-use car?

A mixed-use car requires a private-use VAT correction (correctie privégebruik) when VAT was reclaimed on the car or its costs. With a mileage log (rittenregistratie), the correction is based on actual private kilometres. Without a log, the default forfait is 2.7% of the catalogue price (catalogusprijs, incl. VAT and BPM) when VAT on purchase was deducted, or 1.5% in the private-car method. This matters because 2.7% of €45,000 is €1,215.

For VAT, commuting (woon-werkverkeer) counts as private use, so it increases the private-use share. The correction is normally reported in the last VAT return (BTW-aangifte) of the year. If the forfait method is used, the amount is reported as VAT due in box 1d (Privégebruik) of the VAT return. Use a mileage log only if the log is complete for the full year.

• Choose the VAT position first: business car (bedrijfsvermogen) or private car (privévermogen).
• Track private vs business kilometres in a mileage log if the freelancer wants an actual-use calculation.
• If the mileage log is missing or incomplete, use the forfait percentage (2.7% or 1.5%).
• Reduce the calculated correction if the car is also used for VAT-exempt turnover (pro-rata).
• Report the correction in the last VAT return of the year and keep the calculation with the records for 7 years.

What changes if you have VAT-exempt income or your business use changes over time?

If turnover is partly VAT-exempt, reclaim car VAT only for the taxed share (for example 60% taxed means 60% reclaim and 40% is not reclaimable). If the ratio changes, VAT on the car may need adjustment during the review period for movable investment goods (roerende investeringsgoederen): the year of first use plus 4 years. An adjustment is needed when the change is more than 10% versus year 1.

The private-use correction amount is also reduced when the car supports VAT-exempt turnover, because the freelancer reclaimed less VAT in the first place. For example, if the forfait produces €1,215 but only 60% of turnover is taxed, the VAT due is €729 (60% × €1,215). This avoids paying back VAT that was never reclaimed.

If the car is treated as a movable investment good for VAT, the Belastingdienst monitors the VAT deduction for 4 years after the year of first use. Each year, compare the taxed/exempt ratio with the ratio used in year 1. If the difference is greater than 10%, report a VAT adjustment in the VAT return for that year, usually in the last return.

• Re-check the VAT percentage whenever taxed vs exempt turnover changes by more than 10%.
• Re-check the VAT percentage when the freelancer joins or leaves the small business scheme (KOR).
• Re-check the VAT percentage when the car starts being used for a new service line with different VAT treatment (21%, 9%, 0%, or exempt).
• Keep a yearly calculation for the 5-year monitoring period (year 1 + 4 years).
• Use a pro-rata percentage consistently across purchase/lease VAT, running-cost VAT, and the private-use correction.

What records should you keep to justify car VAT in a Belastingdienst audit?

A freelancer must keep a VAT administration that is controllable and complete, and must usually keep the records for 7 years (sometimes 10). For car VAT, the key proof is that the VAT amounts were charged and that business use was reasonable and documented. This matters because missing evidence can lead to disallowed VAT and a back payment in euros, plus interest and penalties.

Store car-related documents together with the VAT return calculations so an audit can follow the numbers from invoice to VAT return. A mileage log is the strongest proof for actual-use calculations, but the forfait method still requires a retained calculation. For a broader list of deductible cost categories, see the [deductible expenses guide](/knowledge-hub/deductible-expenses-freelancers-netherlands/).

• Purchase invoice or lease contract showing supplier details, VAT amount, and invoice date.
• Receipts/invoices for maintenance, repairs, tyres, and other running costs that show VAT.
• Mileage log (rittenregistratie) with date, start/end odometer, route, and business purpose for each trip.
• Year-end private-use correction calculation (2.7% or 1.5% forfait, or actual-use method).
• Pro-rata calculation if the freelancer has VAT-exempt turnover (taxed-share percentage).
• Proof of payment (bank statements) that matches the invoices.
• Copies of filed VAT returns (BTW-aangiften) and any submitted corrections (suppleties).

What happens if you claim VAT incorrectly or miss a VAT return deadline?

If car VAT is claimed too high or a private-use correction is missed, the Belastingdienst can issue a VAT assessment (naheffingsaanslag) plus interest and penalties. Late VAT filing beyond the 7-day grace period triggers a €82 penalty per return. Late payment can trigger a 3% penalty, with a €50 minimum and a €6,709 maximum. Tax interest on a VAT assessment runs from 1 January after the tax year until 14 days after the assessment date.

If a freelancer discovers an underpayment, the safest route is to submit a VAT correction (suppletie omzetbelasting). When the correction is sent within 3 months after the end of the year, or the VAT is corrected within the same year, the risk of penalties is reduced; late corrections can trigger a more serious penalty. Keep the correction calculation with the VAT records for 7 years so the correction can be explained later.