Financial lease motorcycle: business leasing and possibilities

Ownership and tax advantages of a business motorcycle

Financial lease for a motorcycle works in much the same way as for a passenger car. You purchase the vehicle on an instalment basis and place the motorcycle on your company's balance sheet. This means you can directly reclaim the VAT on the purchase price via your VAT return, provided it is a VAT-eligible motorcycle.

In addition, you are entitled to investment allowances and can claim depreciation and interest as business expenses. Always consult your accountant or advisor for the current rules from the Dutch Tax and Customs Administration.

Addition to taxable income (bijtelling) and administration for private use

A significant advantage of a company motorcycle is that the addition to taxable income (bijtelling) works differently than for a passenger car. You only pay bijtelling on the actual private kilometres driven, calculated at the real cost per kilometre. Accurate mileage registration is essential to prevent discussions afterwards.

Are you curious about the available models for your company? View the range of business motorcycles directly for more inspiration.

Costs and maintenance under your own management

Because you are the economic owner with financial lease, you are responsible for the operational costs yourself. This includes insurance, motor vehicle tax, repairs, and regular maintenance.

However, you have complete freedom to decide where you have the maintenance carried out and which insurance coverage best suits your situation.

How does the VAT scheme work for a financial lease motorcycle?

With financial lease of a motorcycle, you are the economic owner. This means that, in principle, you can reclaim the VAT on the purchase of the motorcycle, as well as on maintenance and running costs, from the Dutch Tax and Customs Administration. This is an important tax advantage for entrepreneurs. The VAT reclaim directly contributes to a lower initial investment and reduces the operational costs of your business motorcycle.

The reclaim of VAT is dependent on the actual business use. For private use of the motorcycle, an adjustment must be made for the portion of VAT related to that private use. This adjustment can be calculated in various ways, often based on a fixed percentage of the list price, or detailed mileage records. Good administration is essential to handle this correctly.

• VAT on purchase is in principle reclaimable.
• VAT on maintenance and fuel can also be reclaimed.
• Adjust VAT for private use of the motorcycle.
• Accurate administration is required for the Dutch Tax and Customs Administration.

What are the options after the financial lease contract ends?

After the financial lease contract for your motorcycle ends, there are typically two common options. The most direct and common option is to acquire the motorcycle for a pre-agreed residual amount. This amount is determined at the start of the lease contract. After payment of this residual amount, the motorcycle becomes your full legal property. This offers certainty and the possibility to continue using or selling the motorcycle.

Another possibility is to trade in the motorcycle for a new model, whereby the residual value of the old motorcycle is used as a down payment for a new lease contract. Sometimes it is also possible to sell the motorcycle to a third party and use the proceeds to settle the residual amount with the leasing company. The flexibility at the end of the term makes financial lease an attractive option for many entrepreneurs.

Frequently asked questions