Does an electric fatbike fall under the small business investment deduction (KIA)?

Yes, a electric fatbike Yes, an electric fatbike is basically covered by the small business investment deduction (KIA) when purchased on a business basis. As an entrepreneur, you may deduct up to 28% of your investment in business assets, including an electric fatbike, from your profit. This applies if the fatbike is used for at least 10% for business purposes and the investment is between €2,400 and €332,994 (figures 2023). The exact deduction percentages vary by investment amount and can be adjusted annually by the Tax Office.

1. What is the small business investment deduction (KIA) for entrepreneurs?
2. Are electric fatbikes covered by the KIA scheme?
3. What financial benefits does an electric fatbike offer businesses?
4. How do you calculate ROI of a business electric fatbike?
5. What subsidies are available for electric fatbikes in the Netherlands?
6. What are the benefits of leasing options for electric fatbikes?

The small-scale investment deduction (KIA) is a tax incentive provided by the Dutch government. It helps entrepreneurs with investments. It is an additional deduction on top of normal depreciation.

"KIA is one of the best tax schemes for entrepreneurs," says Joeri from STOER Bikes. "You get an immediate return on your investment. Often entrepreneurs don't even know they are entitled to it."

The KIA is designed to encourage investment in businesses. Available to all entrepreneurs who pay income or corporate taxes. You must invest in business assets needed for your business.

Deduction percentage depends on total investment amount per fiscal year:

• Up to €2,400: no entitlement to KIA
• Between €2,400 and €59,939: maximum 28%
• Between €59,939 and €110,998: flat fee €16,784
• Between €110,998 and €332,994: amount gradually decreases
• Above €332,994: no more entitlement to KIA

These amounts may change annually. Important to check current figures with Tax Office. KIA scheme is important tax facility for entrepreneurs. Also for sustainable means of transport such as electric fatbikes.

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

Yes, electric fatbikes are covered by the KIA scheme. However, they must meet certain conditions. An electric fatbike is considered a business asset for business purposes.

"Almost all of our business customers use KIA," says Joeri. "A €4,000 fatbike means an immediate €1,120 discount with 28% KIA. That makes investing much more attractive."

Prerequisites for KIA scheme:

• For at least 10% business use
• Purchase price within KIA limits (minimum €2,400)
• Expected useful life longer than one year
• Not covered by excluded categories

If also private use, you must exclude private use from KIA. You can only include business portion of investment in calculation. For fatbikes both business and private make reasonable division based on actual use.

Electric fatbikes with robust construction and versatility are particularly suitable for business use. Especially in urban areas, they offer sustainable alternative to car use.

Want to know more about corporate eligibility? Then read our blog "10 advantages of fatbikes for daily use in the city“

An electric fatbike offers several tax and financial benefits for business owners. This makes it an attractive investment for your business.

"Entrepreneurs are always amazed at all the benefits," says Joeri. "Not only the KIA, but also lower operating costs. A fatbike is just much cheaper than a car."

Direct tax benefits:

• Small-scale investment deduction (KIA): deduct up to 28% from investment
• Environmental Investment Allowance (MIA): additional percentage for some electric bikes (up to 45%)
• Random depreciation of environmental investments (VAMIL): 75% depreciate at self-selected time
• VAT deduction: VAT on purchase and maintenance costs deductible for business use

Operational savings:

• No fuel costs, only electricity for charging
• Lower maintenance costs than cars and scooters
• Reduced parking costs
• Saving time by driving faster through city

Indirect benefits: Electric fatbikes contribute to more sustainable image of company. This is valuable at a time when customers attach greater importance to environmentally conscious companies. Purchase can be fiscally advantageous as well as contribute to positioning the company as a socially responsible business.

Want to know more about cost savings? Then read ous blog "8 Main differences between entry-level and premium fatbikes“

Calculating Return on Investment helps in informed decision about this investment. Steps to calculate ROI are clear to follow.

"ROI calculation shows the real value," says Joeri. "Often entrepreneurs earn back their fatbike within 2 years. Especially by saving on car costs."

Step 1: Calculate total investment

• Purchase price electric fatbike
• Cost of accessories and modifications
• Minus any subsidies and tax breaks (KIA, MIA)

Step 2: Calculate annual savings

• Fuel savings compared to car or scooter
• Parking cost savings
• Maintenance cost savings
• Saving time by driving faster through city
• Avoided costs for public transportation or cabs

Step 3: Estimate useful life and residual value

• Expected useful life (usually 5-7 years)
• Estimated residual value after this period

Step 4: Calculate ROI (Total savings over lifetime + residual value - investment) / investment × 100%

Calculation example: Electric fatbike €3,500. With KIA 28% deduction = at tax rate 37.1% about €364 tax benefit. Annual €800 savings in transportation costs. Net investment (€3,136) recouped in less than 4 years.

Consider indirect benefits: less absenteeism due to more exercise, positive corporate image, more flexibility urban areas. Harder to monetize but contribute to total value investment.

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

Several subsidy and incentive schemes are available to entrepreneurs in the Netherlands. These invest in electric fatbikes.

"Grants can really make a difference," says Joeri. "If you combine KIA with local grants, you can sometimes get as much as 50% of your investment back."

Available arrangements:

• Local subsidies: many municipalities offer subsidy schemes for electric (cargo) bikes business use
• Environmental Investment Allowance (MIA): additional investment deduction for certain electric bikes on Environmental List
• Random depreciation of environmental investments (VAMIL): 75% depreciate investment at tax favorable time
• Subsidy Scheme for Emission-Free Commercial Vehicles (SEBA): aimed at larger electric vehicles, sometimes including cargo bikes

Local differences: Local regulations vary by municipality. Smart to check with your municipality. Availability and conditions may change annually.

Information sources:

• Rijksdienst voor Ondernemend Nederland (RVO).
• Your congregation
• Financial advisor

Timing is important: Some schemes have specific application periods or limited budget. Plan application well. Make sure all required documentation is in order before applying for a grant.

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

Besides buying, as an entrepreneur you can also choose to lease electric fatbike. Leasing offers several financial and practical advantages.

"Leasing is becoming increasingly popular," says Joeri. "Especially for startups that prefer to put their money into other things. No big investment, but all the benefits."

Lease Benefits:

• Lower initial costs: no large lump sum investment, staggered payments
• Maintain working capital: financial resources available for other business investments
• Predictable monthly costs: including maintenance and insurance with operating lease
• Tax deductibility: lease installments fully deductible as business expenses
• Always latest models: switch to newer model after contract expires

Two main forms of leasing:

• Operational lease: leasing company retains ownership. All costs maintenance, insurance, repairs usually included
• Financial lease: you become economic owner. Afterwards, also legal owner. Responsible for maintenance and insurance

Balance effects: With operating lease, fatbikes remain off balance sheet. Favorable for financial ratios. With financial leasing, fatbikes come on the balance sheet. You can depreciate which offers tax advantages.

Bicycle Lease Plan: For ZZP'ers and small businesses, bike lease plan can be attractive. Takes away worries about maintenance and replacement. More and more leasing companies offer specific packages for electric fatbikes.

For right choice between buying or leasing sensible calculation. Suits your business situation and expected useful life. Financial advisor can help with consideration.

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