Company bicycle as a freelancer: deduction, VAT and 7% addition
Written by Ilias Aarrass7 min read · Published on · Last reviewed on 
In short
A company bicycle carries a fixed addition of 7 per cent of the list price including VAT per year, with no trip log and unlimited private use.
- You must use the bicycle for at least 10 per cent of your kilometres for business; commuting counts towards that.
- Keep the bike private and you deduct € 0.25 per business kilometre; that amount is all-in and separate costs cannot be claimed alongside it.
- The addition is based on the model's consumer list price, not on what you paid with a discount or second-hand.
- Under the small business scheme you cannot reclaim the VAT on the bike, which removes much of the advantage.
More and more freelancers cycle to clients or projects, especially in the city. What many do not know: just like a car, you can put a bicycle on the business. The rules are even considerably friendlier. This article covers when that is smart, how the 7 percent addition works and the alternative if you keep the bike private.
How the company bicycle works
If the bicycle is on the business, the purchase (through depreciation), maintenance, insurance and for example a battery are all business costs. If you buy the bike with VAT on the invoice, you reclaim that VAT to the extent of business use. This also applies to e-bikes and speed pedelecs, which are very popular for commuting and client visits.
If you also use the business bicycle privately, a fixed addition of 7 per cent per year applies. Note what that percentage is based on: the consumer list price including VAT, not what you actually paid. If you buy at a discount or second-hand, the list price of that model counts, not your invoice amount.
To put the bicycle on the business you must use it for at least 10 per cent of your total kilometres for business; commuting counts towards that. Unlimited private use is allowed, and you do not need a mileage log. That is a big difference compared with a company car.
| On the business | Kept private | |
|---|---|---|
| Purchase | Depreciate, or deduct at once below € 450 | Not deductible |
| Maintenance, battery, insurance | Deductible | Not deductible |
| VAT | Reclaimable in proportion to business use | Not reclaimable |
| Addition | 7% of the list price incl. VAT | None |
| Per-kilometre deduction | No, the costs are already in your books | € 0.25 per business kilometre |
| Records | Keep invoices, no trip log | Track business kilometres |
Keeping the bike private: 0.25 euro per kilometre
If you keep the bicycle private, you may deduct 0.25 euro from your profit for every business kilometre, exactly as with a private car. That amount is all-in: you cannot claim separate costs alongside it. Cycle 2,000 business kilometres a year and that is a 500 euro deduction, with no addition and no cost administration. For an inexpensive bike with little business use, this is often the simplest route.
Which is better for you?
The rule of thumb: the more expensive the bike and the more business use, the sooner the business option wins. For an expensive e-bike or cargo bike used daily for work, the cost deduction and VAT refund quickly outweigh the low addition. For a city bike of a few hundred euros, the kilometre deduction is often just as good, but much simpler. If in doubt, have it calculated with your own numbers.
Worked example: a € 3,500 e-bike used for five years
- VAT reclaimed at full business use
- € 607
- Depreciation per year on € 2,893 excl. VAT
- around € 579
- Addition: 7% of € 3,500
- € 245 per year
Result: On balance you lower your profit by around € 334 a year, plus maintenance and battery, and you reclaimed € 607 of VAT once
Watch out under the small business scheme
If you use the small business scheme, you cannot reclaim the VAT on the bicycle. A large part of the advantage then disappears, and the bike counts including VAT towards the 450 euro threshold. In that case be sure to also calculate the private route with the per-kilometre deduction.
Frequently asked questions
How much addition applies to a company bicycle?
Seven per cent a year of the consumer list price including VAT. For a 3,500 euro bike that is 245 euros added to your profit. Unlimited private use is allowed.
What exactly is the addition based on?
On the model's list price including VAT, not on what you paid. If you buy at a discount, in a sale or second-hand, the list price remains the basis.
Must I keep a mileage log for the bicycle?
No. Unlike a company car, no trip log is required. You must use the bike for at least 10 per cent of your kilometres for business, including commuting.
Can I reclaim VAT on an e-bike?
Yes, in proportion to business use, provided you have VAT-taxed turnover and the invoice is in your company's name. Under the small business scheme you cannot.
Which is better: bike on the business or private?
The more expensive the bike and the more business use, the sooner the business route wins. For a city bike of a few hundred euros the 0.25 euro per kilometre deduction is usually just as good and far simpler.
Does this also apply to a cargo bike or speed pedelec?
Yes, the scheme covers all bicycles, including e-bikes, cargo bikes and speed pedelecs. Precisely with those pricier models the business route is often most advantageous.
Sources
- Private use of vehicles other than cars: 7% additionBelastingdienst · belastingdienst.nl
- Business use of a private vehicle 2026: € 0.25 per kilometreBelastingdienst · belastingdienst.nl
- Conditions of the small business schemeBelastingdienst · 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.
