Traffic fines and vehicle costs: what is and is not deductible
Written by Ilias Aarrass5 min read · Published on · Last reviewed on 
In short
Fines are excluded from deduction, even on a business trip; driving your private car for business, € 0.25 per kilometre is all-in and fuel, tolls and parking are not deducted separately.
- The tax authority states literally that costs such as fuel, insurance, tolls and parking may not be deducted separately from your profit.
- A parking tax reassessment is legally a tax rather than a fine, and is therefore deductible on a business trip.
- If the car is a business asset you deduct all actual costs, parking and tolls included, and correct private use through the addition to income.
- A contractual late payment charge or a supplier's collection costs fall outside the exclusion and are simply deductible.
Driving for work costs money, and far from every euro of it may come off your profit. The law explicitly excludes fines, even when you were demonstrably travelling on business. At the same time many entrepreneurs leave costs on the table that are fully deductible, from parking to the car wash. This article lines up per cost item what you may deduct, whether it carries reclaimable VAT, and what changes when the car is a business asset rather than a private one.
Fines: never deductible, no exceptions
Income tax law excludes fines from deduction. That covers speeding, running a red light, phone use behind the wheel and illegal parking, and it makes no difference whether you were heading to a client or to the beach. Administrative penalties fall under it too, such as a default penalty from the tax authorities or a labour inspectorate fine. A fine carries no VAT, since nothing is supplied in return, so there is nothing to reclaim either. So book a ticket as a private withdrawal rather than a cost; it is exactly the kind of item that stands out immediately in an audit.
Which vehicle costs are deductible
If the car is a business asset, you deduct all actual costs and correct afterwards for private use through the addition to income. If you keep the car private, you instead claim a fixed amount per business kilometre, which is deemed to cover all vehicle costs. Other vehicle costs are not claimed separately alongside it: fuel, insurance, tolls and parking are all already inside that amount.
| Cost item | Deductible from profit | Reclaim VAT |
|---|---|---|
| Fuel or charging | Yes, in full | Yes, with a private-use correction |
| Maintenance, tyres, inspection | Yes, in full | Yes |
| Road tax | Yes | No, no VAT |
| Vehicle insurance | Yes | No, insurance tax |
| Parking, tolls, ferry | Yes | Yes, with a receipt or invoice |
| Car wash, wipers, accessories | Yes, business share | Yes |
| Traffic fine | No | No |
| Parking tax reassessment | Yes | No |
Private car: everything sits in the per-kilometre amount
Driving for business in your private car, you book € 0.25 per business kilometre as a cost. That amount covers fuel, maintenance, insurance, road tax and depreciation together. Claiming a separate fuel receipt is therefore not allowed, and that is immediately the most common error: you would count the same costs twice. The same goes for parking, tolls and the ferry: the Dutch tax authority states explicitly that such costs may not be deducted separately from your profit. See travel costs and the mileage allowance for details and mileage records for the evidence you need.
VAT works differently with a private car. You may reclaim the VAT on maintenance, fuel and repairs in proportion to business use, even though the car sits on your private balance sheet. That does require watertight mileage records, since without an allocation key the deduction will not stand. See private use of a car and VAT.
Staff fines and charging costs on to clients
If you cover an employee's fine, that is taxable pay for them: the ticket remains non-deductible and you gain a payroll item. So set out in your agreements that traffic fines are for the driver's account; that is the calmest route practically as well as fiscally. With subcontractors the fine is theirs and does not concern you.
Charging travel costs on to a client is of course allowed. Put them on a separate invoice line at the same VAT rate as your service, and agree the rate in advance in your quotation. A recharged mileage allowance is simply revenue for you; the costs stay on your side. See charging costs on to your client. Passing on a fine makes no sense: it is not deductible for you and merely becomes an awkward conversation with your client.
Frequently asked questions
I got a fine during a client visit. Really not deductible?
Really not. The law excludes fines regardless of the trip's business character. Book it as a private withdrawal. Only a parking tax reassessment may be claimed as a cost, because it is formally a tax rather than a fine.
Can I reclaim VAT on parking?
Yes, provided you have a receipt or invoice showing VAT. Parking apps usually supply a monthly invoice; switch that on, because without an underlying document the deduction lapses. Up to € 100 a simplified invoice or till receipt suffices.
Are parking costs separately deductible with a private car?
No. The Dutch tax authority states that costs such as fuel, insurance, tolls and parking may not be deducted separately from your profit: the € 0.25 per kilometre covers them all. You may still reclaim the VAT on a parking receipt for a business trip.
And a late payment charge from a supplier?
That is not an administrative or criminal fine but a contractual charge, and it is simply deductible. The same goes for collection costs you have to pay. The exclusion applies only to government fines.
Sources
- Business use of a private vehicle 2026Belastingdienst · belastingdienst.nl
- Overview of potentially deductible business costsBelastingdienst · 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.
