How does VAT reclaim work when buying a commercial vehicle?

Conditions for reclaiming VAT on commercial vehicles

You can’t just reclaim VAT or buy a commercial vehicle for your company without meeting certain criteria. The Belastingdienst sets out several conditions:

• First, you must be a VAT-registered entrepreneur. This means you’re registered with the Dutch Chamber of Commerce and file VAT returns as a business.
• The vehicle must be used primarily for business purposes—at least 10% of the time.
• The commercial vehicle must be registered in the company’s name.
• The invoice must also be issued in the company’s name and include your VAT number.
• You can only reclaim VAT using a valid invoice that clearly lists the VAT amount.

What about VAT on electric commercial vehicles?

VAT on electric commercial vehicles is deductible under the same conditions as vehicles with a combustion engine. However, electric commercial vehicles come with additional tax benefits:

• The purchase price is fully tax-deductible.
• Up to 50% of the VAT can be reclaimed at the time of purchase.
• You can opt for a flat-rate VAT adjustment if the vehicle is also used for private purposes. This is a standard percentage added at the end of the year if you don’t keep a mileage log.
• Installing a charging station at a business location is also fiscally beneficial: it’s 100% tax-deductible until 2029 and even 150% if publicly accessible under certain conditions.
• Maintenance and insurance costs are deductible as well, and often lower since electric vehicles don’t have a combustion engine.

VAT deduction on purchase, leasing, and private use

Buying a commercial vehicle

If your commercial vehicle is used for business purposes (minimum 10%), the VAT is fully deductible. Just make sure the invoice is in the name of your business and lists the VAT amount separately. If the vehicle is used privately, an annual adjustment must be made—either using a mileage log or a flat-rate correction of 2.7% of the list price including VAT and BPM. The VAT on fuel, maintenance and electricity is also deductible for the business-use portion.

Leasing a commercial vehicle

With financial leasing, you can reclaim VAT on the full amount upon delivery. However, this doesn't apply to operational lease, as the vehicle remains the property of the leasing company.

• For financial lease, monthly payments cannot include VAT deductions—only the interest and repayments (excluding VAT) are deductible.
• With operational lease, the monthly VAT on the lease amount is deductible.
• The same private use rules apply: you’ll need either a mileage log or a 2.7% flat-rate correction.

Private and business use

VAT is only deductible for the business portion of the usage. If the vehicle is used for both business and private purposes, you'll need a detailed kilometre registration or apply the 2.7% correction. If this is not properly tracked, you’ll need to repay part of the VAT. Commutes are considered private use for VAT purposes.

How does VAT work on used vehicles?

In the Netherlands, there are two VAT schemes for used vehicles:

Standard VAT scheme

Used when the seller originally reclaimed VAT on the vehicle purchase. The VAT is clearly listed on the invoice.

Example: A used commercial vehicle is sold for €12,100 including VAT →\ €10,000 sale price + €2,100 VAT → You can reclaim this VAT.

Margin scheme

Used when the seller did not reclaim VAT when buying the vehicle—for example, in a private sale or for a margin vehicle. The VAT is hidden in the sale price, and as a business buyer, you cannot reclaim VAT on margin vehicles.

Example: A vehicle is sold for €10,000 under the margin scheme →\ No VAT is shown on the invoice → No VAT can be reclaimed.

Avoiding VAT return mistakes—what to watch out for

Filing VAT returns doesn’t always go smoothly. Corrections can be a hassle, so it’s best to get it right from the start. Here are common mistakes and how to avoid them:

Deducting VAT on private use without correction

Some businesses reclaim the full VAT on a vehicle that is also used privately. If this applies to you, make sure to correct it at the end of the year using either:

• a mileage log, or
• a flat-rate correction of 2.7% of the catalogue value (incl. VAT and BPM)

Using incorrect or incomplete invoices

If your invoice doesn’t meet Belastingdienst requirements, you’re not entitled to VAT deduction—even if you’ve paid the full amount. Make sure the invoice includes:

• Supplier’s name and address
• Your business details
• Supplier’s VAT number
• A breakdown of VAT amounts

Forgetting to allocate VAT on usage costs

VAT on fuel, maintenance, and electricity must be split proportionally to business use. For example, if 70% of the usage is business-related, 70% of the VAT is deductible.

Reclaiming VAT on a private purchase

You can’t reclaim VAT on a commercial vehicle purchased privately or registered under a private individual. The vehicle must be part of your business assets, and the invoice must be in your company’s name.

VAT rules can be complex—especially when your commercial vehicle is also used privately. That’s why it’s important to maintain proper records and prevent costly mistakes. Still have questions? Or want to know which commercial vehicle best suits your needs?

At BAS World, we’re happy to help. With clear advice, transparent communication, and a wide range of vehicles tailored to your business, we make business driving simple, cost-effective and worry-free.