Mileage Log: no addition to taxable income for less than 500 km private use

What should it contain?

• date and odometer readings at the start and end of the journey;
• departure and arrival address;
• the route driven in case of detours;
• whether the journey was for business or private use.

Declaration of no private use

Employees can request a 'declaration of no private use' (verklaring geen privégebruik) from the Dutch Tax and Customs Administration (Belastingdienst). Business owners with a company car keep a mileage log.

How do I maintain a complete mileage log?

An accurate and complete mileage log is crucial to demonstrate that the 500-kilometre private use limit has not been exceeded. The Dutch Tax and Customs Administration (Belastingdienst) sets specific requirements for the content of each journey, both business and private. Accurately recording this data prevents discussions and potential additional tax assessments, should your log be audited. It is therefore important to update the log consistently and promptly.

There are various methods for maintaining a mileage log. This can be done manually in a notebook or a spreadsheet, but automated systems are also available. These systems, often GPS-based, significantly reduce the administrative burden and minimise the chance of errors. Regardless of the chosen method, it is essential that all required data per journey is recorded and that the log is transparent and auditable at all times.

What are the consequences of insufficient evidence?

If the mileage log does not meet the requirements of the Dutch Tax and Customs Administration, or if it cannot prove that private use remains below 500 kilometres per year, this can lead to adverse tax consequences. The Tax and Customs Administration may then decide that the car is indeed used privately, even if you believe otherwise. This means that the addition to taxable income (bijtelling) will still apply, retroactively.

The addition to taxable income will then be calculated over the entire period during which the log was insufficient. This not only results in a higher tax assessment but often also an additional tax levy and potentially even fines. It is therefore of great importance to proactively ensure a correct and complete mileage log to prevent unexpected financial setbacks and administrative hassle.

Frequently asked questions