Bookkeeping for freelance couriers and parcel drivers: van, VAT and independence
Written by Ilias Aarrass6 min read · Published on · Last reviewed on 
In short
A freelance courier charges 21 percent VAT, because the reduced 9 percent rate only applies to passenger transport; the business van is both your biggest cost and your biggest deduction.
- With an exclusive business use declaration you need no trip log, but you may not drive a single private kilometre in the van.
- If you deliver with your private car you deduct no actual costs but € 0.25 per business kilometre.
- Traffic fines are never deductible, not even if you got them during a busy route.
- If you drive every day for the same depot that sets route, hours and rate, bogus self-employment is a real risk.
Parcel delivery is one of the fastest growing sectors among freelancers. The threshold is low: a van, a licence and a client, and you can start. That is exactly why the admin side often goes wrong. Your van is your biggest cost and at the same time your biggest tax opportunity, you charge a different VAT rate than a taxi driver, and many couriers drive for a single depot or platform that sets route, hours and rate. That last point touches the question of whether you count as an entrepreneur for tax at all. This article covers the van, VAT, your mileage records and the independence test.
The van: the heart of your records
Most couriers drive a van owned by the business. For tax it has advantages a passenger car lacks: the low road tax rate for entrepreneurs, entitlement to the investment deduction and the option to avoid a benefit in kind with the exclusive business use declaration. The conditions and the registration tax rules are in buying a van as an entrepreneur. If you drive an electric van, also read charging point and charging costs.
If you deliver with your private car, you do not deduct actual costs but € 0.25 per business kilometre. If you deliver meals or parcels by bike, an electric bike is an ordinary business asset, see a business bike for freelancers. Traffic fines are never deductible, not even if you got them on a busy route.
| Item | Deductible | VAT reclaimable |
|---|---|---|
| Fuel or charging | Yes | Yes, 21% |
| Maintenance, tyres, MOT | Yes | Yes, 21% |
| Van and cargo insurance | Yes | No, exempt |
| Road tax | Yes | No VAT |
| Phone, holder and handheld scanner | In proportion to business use | In proportion to business use |
| Traffic fines | No | No |
VAT: 21 percent on every route
Goods transport falls under the standard VAT rate of 21 percent. The reduced rate of 9 percent only applies to passenger transport, as for a taxi driver, and so not to parcels. Because your clients are almost always businesses, it makes little difference to them: they deduct the VAT again. For you it means handing over a sizeable amount every quarter, reduced by the VAT on your van and fuel.
If you drive for a client in Belgium or Germany, you usually reverse-charge the VAT to that client and report the revenue in the EU sales listing, see VAT with foreign clients. In the start-up phase you often get VAT back instead, because the VAT on buying your van falls into one quarter while your revenue is still building up. If you drive a truck, stricter rules apply; see bookkeeping for the self-employed truck driver.
Recording kilometres and revenue
With the exclusive business use declaration you do not need a trip log for the benefit in kind. Still, a simple mileage overview is wise: start and end reading per day, plus the route or depot. It supports your fuel costs and shows that your kilometres match your revenue. If you drive a private car, complete records are required for your € 0.25 per kilometre, see keeping mileage records.
Also keep the daily summaries from your client's scanner app. They show how many stops you made each day and, together with the statements, form the evidence of your revenue. If you refuel with a fuel card in your business name, you automatically get a monthly invoice with VAT, which saves loose receipts.
Worked example: Youssef's VAT quarter
- Revenue from depot statements
- € 18,000, VAT € 3,780
- Fuel excluding VAT
- € 2,400, VAT € 504
- Maintenance and tyres
- € 600, VAT € 126
- Phone and scanner
- € 200, VAT € 42
- Insurance
- € 600, no VAT
Result: Youssef pays € 3,780 minus € 672 of input VAT: € 3,108. If he moves the VAT from every paid statement straight to a separate account, the return is a formality rather than a bill that catches him out.
Self-employed or disguised employee?
In parcel delivery, bogus self-employment is always lurking. If you drive for the same depot every day, in their clothing, on routes they plan and at a rate they set, the relationship looks very much like employment. The tax authorities look at the actual situation, not at what your contract says or whether you are registered with the Chamber of Commerce.
What strengthens your position: several clients, your own van with your own costs and risks, the freedom to send a replacement and a rate you negotiate. Record that and keep it. If you drive internationally with a van whose permitted maximum mass exceeds 2,500 kilos, also check whether you need a licence for commercial goods transport; European rules have applied to that since 2022.
Frequently asked questions
Which VAT rate do I charge as a parcel courier?
21 percent. The reduced 9 percent rate only applies to transporting people, not parcels or goods.
Do I need a trip log with the exclusive business use declaration?
Not for the benefit in kind. A simple overview of daily odometer readings is still wise, because it supports your fuel costs and your revenue.
May I use my van privately at the weekend?
Then the exclusive business use declaration is no longer accurate and you must withdraw it. If you drive more than 500 private kilometres a year, a benefit in kind follows, and for VAT you correct the private use in your last return of the year.
Is the small business scheme useful for a courier?
Rarely. Under the scheme you charge no VAT, but you also get no VAT back on your van, fuel and maintenance. Because your clients are businesses that deduct the VAT anyway, the scheme usually only costs you money.
Sources
- VAT rate for passenger transport: 9 percentBelastingdienst · belastingdienst.nl
- Goods and services at 21 percent VATBelastingdienst · belastingdienst.nl
- Declaration of exclusive business use of a vanBelastingdienst · belastingdienst.nl
Sources checked on
This article provides general information based on the rules known for 2026 and does not replace personal tax advice. For your specific situation, we're happy to take a look with you.
