Using a rental or shared car for business: costs, VAT and private-use addition

Written by Ilias Aarrass5 min read · Published on 9 October 2026 · Last reviewed on 9 October 2026

In short

If you rent a car or shared car briefly for business trips, the costs are deductible and there is no private-use addition; you deduct VAT for the business part. If you rent a car for so long that it is constantly available to you, company car rules apply, including the addition above 500 private kilometres.

Short-term rental for business trips gives no private-use addition.
With mixed use only the business part is deductible.
You deduct VAT on the rent if the invoice is in your business name.
Long-term rental falls under the company car rules.

More and more freelancers have no company car. They travel by public transport and take a shared or rental car when there is no other option. For tax purposes that is straightforward, as long as you know which trip is business and which is not. There is one pitfall: if you rent a car for so long that it is effectively always available to you, the rules for a company car suddenly apply. This article explains how to book rental and shared car costs, how VAT works and where the line is.

Short-term rental for a business trip

If you rent a car for a day or a few days to drive to a client, a supplier or a job, the rental costs, fuel or charging costs, parking and tolls are simply business costs. There is no private-use addition, because the car does not belong to your business and is not structurally at your disposal.

If you also use the same rental period privately, for example a weekend away after the job, only the business part is deductible. Split the costs by days or kilometres and keep track of which trips were business. A simple note in your mileage log is enough.

Shared cars and subscriptions

With a shared car from a provider you often pay a subscription plus an amount per hour and per kilometre. The subscription is business if you mainly use the shared car for business. If you also use it privately, you split the subscription proportionally. You assign trip costs per trip: business or private.

If you rent a car from a private individual through a platform, you usually receive an invoice from the platform for the service fee and pay the rent to the owner. Keep both; without an invoice or receipt the deduction becomes difficult, see lost receipt.

VAT

The invoice from a rental company or shared car provider shows 21 per cent VAT. You deduct it for the business part, provided the invoice is in your business's name. Fuel and charging costs on the road follow the same split.

If you rent from a private individual, there is no VAT on the rent and nothing to reclaim. The platform's service fee usually does include VAT, sometimes from another EU country; see VAT on invoices from abroad for how to handle it.

When does it become a company car after all?

If you rent a car for a long, continuous period, so that it is constantly available to you, the tax authorities treat it as your business's car. The private-use addition then applies, unless you show that you drive no more than 500 private kilometres a year. With a few separate days a month this does not arise.

Also compare with your own private car: if you drive it for business, you deduct 0.25 euros per business kilometre; see travel costs and mileage allowance. For those who drive little, a mix of public transport and an occasional shared car is often the cheapest.

Frequently asked questions

Do I pay a private-use addition on a rental car?

Not with short-term rental for business trips. You do if you rent a car for so long that it is constantly at your disposal and you drive more than 500 private kilometres a year.

Can I reclaim VAT on a shared car?

Yes, for the business part, provided the invoice is in your business's name. When renting from a private individual there is no VAT.

Is a shared car subscription deductible?

Yes, to the extent you use the shared car for business. If you also use it privately, you split the subscription proportionally.

Sources

Private use of a carBelastingdienst · belastingdienst.nl
Which costs can I deduct from my profit?Belastingdienst · belastingdienst.nl

Sources checked on 9 October 2026

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.