Business Vehicle Financial Lease: Van or Commercial Vehicle

Advantages of leasing a business van

With a business vehicle based on financial lease, you are immediately the economic owner. This means that the van appears on your balance sheet, and you are entitled to interest deduction and depreciation.

Additionally, you can furnish, brand, and modify the van according to your own insights for your specific activities. View the current overview of commercial vehicles for suitable vehicles for your business.

Approach to VAT and investment allowance

When purchasing a commercial van, as an entrepreneur, you can often reclaim the VAT on the purchase price from the tax authorities. The exact purchase conditions and possible investment allowance depend on the applicable legislation.

Consult the current rules of the Dutch Tax and Customs Administration (Belastingdienst) or your accountant to know precisely which tax benefits apply to your situation.

Setting term and balloon payment

By agreeing on a balloon payment, you can lower the monthly lease instalment. This balloon payment is settled in one go at the end of the term, for example, with the trade-in value of the van.

• Flexible terms tailored to the period of use
• Lower monthly costs through the application of a balloon payment
• Freedom in furnishing and branding

Why choose financial lease for a commercial vehicle?

Financial lease offers entrepreneurs the opportunity to acquire a commercial vehicle, such as a van or light commercial vehicle, without having to make a large upfront investment. Unlike operational lease, you immediately become the economic owner of the vehicle. This means that the commercial vehicle appears on your balance sheet, which can yield tax benefits, such as the possibility of depreciation and claiming investment allowance. Preserving liquidity is a significant advantage, as you keep your working capital available for other business activities.

The fixed monthly instalments throughout the contract term provide budgetary clarity. You know exactly what to expect, which simplifies financial planning. At the end of the term, after fulfilling all instalments and any balloon payment, you become the full legal owner of the commercial vehicle. This gives you the freedom to keep the vehicle, sell it, or trade it in again, without further obligations to the leasing company.

What tax benefits does financial lease offer for a van?

Financial lease for a van comes with various tax benefits that can reduce the total costs for entrepreneurs. Because you are the economic owner under this lease form, you can activate the commercial vehicle on your company's balance sheet. This allows you to depreciate the acquisition value of the van annually. This depreciation reduces taxable profit, meaning you pay less corporate income tax or income tax. It is a structural deductible item that spreads the investment over the years.

In addition to depreciation, you may also be able to use investment allowances, such as the small-scale investment allowance (KIA - kleinschaligheidsinvesteringsaftrek), energy investment allowance (EIA - energie-investeringsaftrek), or environmental investment allowance (MIA - milieu-investeringsaftrek), depending on the nature of the van and any additional specifications. These allowances can deduct a significant portion of the investment costs from taxable profit, resulting in a direct tax saving. The VAT on the purchase price, if you are VAT-registered, can be fully reclaimed immediately with the next VAT declaration.

• Economic ownership: Vehicle on own balance sheet.
• Depreciation possibilities: Annual reduction of profit.
• Investment allowance: Additional tax benefit on top of depreciation.
• VAT reclaim: Direct reclaim of paid VAT.

Frequently asked questions