What are the tax advantages of electric fatbikes for business owners?

Electric fatbikes offer entrepreneurs in the Netherlands several tax advantages that make the purchase attractive. You can take advantage of the Small Scale Investment Allowance (KIA), which allows you to deduct up to 28% of your investment from profits. There are also several subsidy schemes available, both nationally and regionally. There are favorable tax rules for entrepreneurs who opt for leasing arrangements, while the addition rules for e-bikes made available to employees are also advantageous. These tax incentives make the switch to sustainable mobility financially attractive.

1. What are the tax advantages of electric fatbikes for business owners?
2. How does the KIA scheme for purchasing an electric fatbike work?
3. What subsidies are available for electric fatbikes in the Netherlands?
4. What are the benefits of leasing an electric fatbike?
5. How do you calculate the ROI of electric fatbikes for your business?
6. What do you need to know about the additional charge for electric fatbikes?
7. Key tax advantages of electric fatbikes at a glance

As a business owner, you can take several tax advantages when purchasing electric fatbikes for your business. One of the most important benefits is ability to deduct purchase costs as a business investment.

"Many business owners don't know how much tax relief is possible," says Laurens of STOER Bikes. "With our CityX or UrbanX you can really save a lot of money. Not only on the purchase, but also on operational costs compared to cars."

This means you can include full cost in accounting as an asset.

Standard depreciation plus additional benefits: In addition to standard depreciation, you can take advantage of Small Scale Investment Allowance (KIA). This allows you to deduct additional percentage of investment from taxable profit. For electric fatbikes, Environmental Investment Allowance (MIA) also applies. This provides additional deduction percentage for environmentally friendly investments.

Lower operating costs: Entrepreneurs who choose e-fatbikes benefit from lower operating costs compared to cars or scooters. Electricity costs are significantly lower than fuel costs. Maintenance is usually less intensive, especially with belt-drive models.

No additional cost:

• No cost for road tax
• No mandatory MOT
• Insurance premiums typically lower

All this makes electric fatbikes fiscally interesting for companies. Looking for sustainable mobility solutions.

Want to know more about our models? Then read our blog "Fatbike for adults: which one suits you best?“

The Small Scale Investment Deduction is a tax scheme you can take advantage of as an entrepreneur. When investing in electric fatbikes, this scheme offers additional deductions on top of regular depreciation.

"KIA is really a gift from the government," says Laurens. "When you buy our €4,000 UrbanX, you get €1,120 back immediately with 28% KIA. That makes investing much more attractive."

This reduces taxable profits and you pay less income or corporate tax.

Percentage depends on investment amount: For 2023, for investments between €2,400 and €59,939, a deduction of 28% of investment amount applies. For higher investments, percentage gradually decreases. Electric fatbike must have minimum purchase value of €450. Be used as a business asset.

Conditions KIA:

• You must be an entrepreneur for income tax or corporate tax purposes
• Fatbike must be purchased new or financially leased
• Investment must be made within fiscal year
• Fatbike must be used for a minimum of 5 years in operation

KIA scheme can be combined with other tax benefits such as Environmental Investment Allowance. This makes purchasing an electric fatbike even more advantageous.

Want to know more about KIA? Then read our blog "KIA fatbike: 28% investment return for businesses“

Several subsidy schemes are available in the Netherlands that make purchasing electric fatbikes more attractive to entrepreneurs. These schemes range from national subsidies to regional and municipal initiatives.

"Grants can really make a difference," Laurens explains. "One customer received €1,500 in subsidies in Amsterdam for his CityX. That suddenly made the investment much easier."

National schemes: At the national level, entrepreneurs can use BOSA scheme if fatbikes are used for sports activities. There is also MIA that offers additional deduction of up to 45%. For investments in environmentally friendly business assets listed on Environmental List.

Municipal and provincial regulations: Several municipalities and provinces offer local arrangements:

• Amsterdam: 'Clean Air' program with subsidy for electric vehicles
• Utrecht and Rotterdam: similar initiatives available

Taking full advantage of subsidies:

• Check current grant schemes with municipality and province
• Verify that fatbike meets specific requirements (type of motor or battery)
• Submit application on time, many grants have limited budget
• Apply for subsidy before making purchase

In many cases, these subsidies can be combined with tax deductions. This makes net investment in business e-bike significantly lower than purchase price.

Want to know more about grants? Then read our blog "Fatbike law changes 2025: what do you need to know?“

Leasing an electric fatbike offers entrepreneurs several tax and practical advantages. Compared to direct purchase, leasing has specific advantages.

"Leasing is becoming increasingly popular for our models," says Laurens. "Operational leasing in particular works well. Full lease costs are deductible and you keep capital free for other investments."

Key tax benefit: Full lease installments deductible as a business expense. This directly reduces taxable profits.

Operational lease benefits: With operating lease, fatbike is not on company's balance sheet. However, you can include full lease costs as operational expenses. This improves liquidity position. No large investment needed at once. Monthly lease costs are predictable.

Additional benefits leasing:

• Often service and maintenance included in lease package
• Benefit immediately from latest technology without large investments
• Switch to newer model after contract expires
• Insurance often part of lease package

Financial lease for ownership: For ZZP'ers and small business owners, financial leasing offers a solution. If you do want to take ownership. Fatbike is on your balance sheet. Benefit from fiscal depreciation and possible investment deductions such as KIA.

By leasing sustainable mobility solution, you keep more capital free. For other business investments. While still enjoying benefits electric fatbikes.

Want to know more about leasing options? Then read our blog "E-fatbike VS E-bike, what are the differences?“

Calculating Return On Investment for electric fatbikes helps you make informed decisions. ROI provides insight into how much value this investment provides relative to cost.

"ROI calculation shows why fatbikes are so interesting," says Laurens. "A CargoX for delivery often pays for itself within 18 months. CityX and UrbanX for service visits a little longer, but with more comfort."

Identify all costs: Start by mapping out all costs: purchase price or lease terms, insurance, maintenance, electricity costs for charging. Any accessories such as rain cover or safety equipment. Deduct tax benefits such as investment deductions, subsidies and tax savings.

Comparing benefits: Compare net costs with benefits. These may include:

• Fuel cost savings compared to cars or scooters
• Lower parking costs (often free for bikes)
• Reduced travel time busy city centers
• Lower maintenance costs, especially in belt-drive models
• Increased productivity through reduced travel time and healthier employees
• Reduced absenteeism due to increased exercise

Practical example: €3,500 electric fatbike that replaces car for city deliveries. Could save €1,200 annually on fuel, €800 on parking costs, €500 on maintenance. With tax advantages added, investment could pay for itself within two years.

Non-financial benefits: ROI calculation should also consider non-financial benefits. Such as improving corporate image by contributing to sustainable mobility. Meeting increasingly stringent environmental requirements in inner cities.

Want to know more about cost savings? Then read ous blog "10 advantages of fatbikes for daily use in the city“

If, as a business owner, you provide electric fatbike to employees for commuting, you have to deal with addition rules. Specific regulations apply to electric bikes.

"Additional tax for fatbikes is very favorable," says Laurens. "Only 7% versus 22% for electric cars. That makes our models attractive as employee benefits."

Tax addition 7%: Electric bikes are subject to tax addition of 7% of recommended retail price (including VAT). When bicycle may also be used privately.

Addition calculation: Addition is calculated on original new value. Not over any lower business purchase price. Addition amount counts as wages in kind. Is added to the taxable income of the employee. As an employer you must pay income tax and premiums on this.

Key points of interest:

• Additional tax credit only applies if employee can also use fatbike privately
• If employee pays co-payment, it can be deducted from additional taxable income
• Administration must clearly record which employee uses which bicycle
• Additional tax credit also applies if DGA provides himself with electric fatbike

Comparison with cars: Compared to cars (22% addition for electric vehicles), addition for electric fatbikes is very favorable at 7%. This makes it attractive alternative for employers. Who want to encourage sustainable mobility without a large tax burden on employees.

Addition rules for electric bikes are relatively new and may change. Wise to stay on top of current legislation.

Want to learn more about employee benefits? Then read our blog "8 Main differences between entry-level and premium fatbikes“

Switching to electric fatbikes for your business offers numerous tax advantages. These make investment attractive. We have listed key benefits.

"With all the tax breaks combined, investing in fatbikes becomes really interesting," says Laurens. "Whether you choose CityX, UrbanX or CargoX - the numbers just add up."

Investment deduction through KIA: As an entrepreneur, you can benefit from investment deduction through KIA scheme. This allows you to deduct up to 28% of investment amount from profits. MIA offers additional deductions for environmentally friendly investments. This further reduces net costs.

Choice between buying or leasing: Offers several tax options. With purchase, you can depreciate fatbike and apply investment deduction. With operating lease, full lease costs are deductible as business expenses. Additional tax credit of only 7% for private use by employees. Significantly lower than 22% for electric cars.

Practical tax concerns:

• Accessories such as rain suits, helmets and panniers deductible as business expenses
• Charge electricity to charge batteries as an operating expense
• Maintenance expenses fully deductible as business expenses
• No road tax or mandatory MOT like motorized vehicles

By choosing sustainable mobility, you contribute to better environment. Strengthen your corporate image and benefit from significant tax advantages.

At STOER Bikes you will find wide range of electric fatbikes with belt drive. Perfectly suited to business needs of entrepreneurs. With an eye on sustainability, tax advantages and practical use in town. We offer solutions that make daily transportation for business more efficient and economical.

Want to know more about all the possibilities? Then read our blog "What is the difference between a regular electric bike and an electric fatbike for business use?“