Mileage allowance: €0.23/km (and what counts)

If you use a private car for business trips, the Netherlands gives you a simple, tax-free way to claim the cost: the mileage allowance (kilometervergoeding). No need to track fuel, maintenance, and depreciation — you just multiply your kilometres by a fixed rate. In 2025 it is €0.23 per kilometre (rising to €0.25 in 2026), and it carries no VAT.

The rate#

2025: €0.23/km 2026: €0.25/km (rising to account for inflation)

These are fixed rates set by the Dutch tax authority. You claim the allowance by multiplying actual kilometres driven for business by the rate for that year. Unlike vehicle expenses (fuel, maintenance, depreciation), you don't need receipts — just the mileage record.

The allowance is tax-free income to you and is not subject to VAT, so you don't claim it on your VAT return. It's a simple deduction from your business profit.

What trips count#

You can claim the allowance only for trips that are clearly business-related:

• Client visits (driving to a meeting, pitch, or site).
• Multi-site work (if you work at different locations for the same client).
• Business errands (picking up supplies, going to the bank for business, etc.).
• Conference or training (driving to a professional event).

Trips that do not count:

• Commute (home to your usual office, even if you have a regular client there). If you work regularly at one location, your daily drive there is a commute, not a business trip. The exception: if you have no fixed workplace and visit clients unpredictably, all driving counts.
• Personal errands, even if they happen during the working day.
• Driving to get coffee (personal).
• Sightseeing or holiday.

Keeping a trip log#

The Belastingdienst does not require you to file a detailed log with your return, but you must be able to defend your kilometre count if you're audited. Keeping a simple record is your insurance.

A basic trip log includes:

• Date of the trip.
• Start and end location (client name, city, or both).
• Business purpose (e.g., "client meeting," "site inspection").
• Kilometres driven (you can estimate if you know the route; a mapping app gives you exact distance).

• Record the date of each business trip
• Note the client or destination (city is enough)
• Write the business purpose in a sentence
• Add the kilometres (use Google Maps or your car's odometer)
• Keep this log in your bookkeeping or admin file for 7 years

You don't need a fancy system. Many freelancers use a simple spreadsheet or a notebook. What matters is that you can show the tax office: "Here's where I went, why, and the distance." If you claim 20,000 km a year and can't point to any record, you'll lose the deduction.

Mileage allowance vs. deducting vehicle costs directly#

You have two ways to handle a car:

Option A: Claim the mileage allowance (simplest for most)

• Multiply your business kilometres by €0.23 (2025) or €0.25 (2026).
• No receipts needed for fuel, maintenance, insurance, or depreciation.
• All costs are bundled into one number.
• Good if you drive under 10,000–15,000 business km/year.

Option B: Own the car as a business asset and deduct all costs directly

• The car is registered to your business.
• You depreciate the purchase cost over 5 years (or reclaim VAT if you're VAT-registered).
• You deduct fuel, maintenance, insurance, and road tax in full.
• You can also deduct a bijtelling (taxable benefit) for private use — roughly €200–€500/month depending on the car.
• More complex, but better if you drive over 15,000 business km/year.

The break-even: If you drive roughly 15,000 business kilometres per year, both methods are about equal. Below that, the mileage allowance is usually simpler and cheaper. Above that, a business car might save you money, but you trade simplicity for a bigger deduction.

Invoicing and mileage#

If you invoice a client for mileage: Some clients ask you to bill them separately for travel. You can do this, but it's subject to VAT (usually 21%), and the client will reclaim it if they're VAT-registered. You cannot claim both the mileage allowance and charge the client on top — that's double-dipping. Decide: either bill the client and claim the cost against that invoice, or claim the mileage allowance and don't invoice separately.

In practice: Most freelancers either include mileage in their daily rate or don't charge for it separately. The mileage allowance is a tax deduction for you, not something you charge customers.

Recording the deduction#

When you record your kilometres in your bookkeeping:

1. Calculate total business kilometres for the year.
2. Multiply by the rate for that year (€0.23/km in 2025, €0.25/km in 2026).
3. Enter the total as a business cost in your profit calculation.

It reduces your profit, just like any other deductible cost. The deduction flows through to your income tax return (Box 1).

Frequently asked questions#

The mileage allowance is one of the easiest deductions to claim and hardest to get wrong — as long as you keep a simple record of where you went and why. A spreadsheet or a notebook is enough. ZZP Belasting tracks your mileage for you, so you always know your annual total and can claim it with confidence.

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