Business fatbike subsidy: here's how to save up to 60% as a business owner

Are you a business owner looking to apply for a business fatbike grant? Then you've come to the right place. Because the purchase price of an electric fatbike does not have to deter you if you know what schemes are available. In the Netherlands, there are several tax breaks and subsidies that can significantly reduce your investment. Think of the KIA, MIA/VAMIL and local municipal schemes. In this blog you can read exactly which steps you need to take, which documents you need and how to get the maximum benefit. So you can make a smart choice for your company.

Applying for a business fatbike grant will take you about 2-3 hours of preparation. You will need your Chamber of Commerce registration, an offer and financial documents. Most applications are reviewed within 4 to 8 weeks. That may sound like some paperwork, but the financial benefit makes this more than worth it.

Why apply for a business fatbike grant?

A business fatbike subsidy offers you direct financial benefits when buying an electric fatbike for your business. Namely, you pay less out of pocket and can also take advantage of additional tax benefits. So that reduces your total investment significantly. For a fatbike such as the STOER UrbanX of €3,199, the net benefit can quickly reach 40% or more when you combine several schemes.

A subsidized fatbike improves your business mobility without the high cost of a company car. You save on fuel, parking costs and maintenance. In crowded cities, an e-fatbike often gets you there even faster than by car. As a result, you also save valuable time. “With the UrbanX, customers save an average of €2,000 per year compared to a car,” says Joeri of STOER Bikes.

Sustainable business is also becoming increasingly important for customers and partners. With an electric fatbike you show that your company is environmentally aware. This strengthens your corporate image and can attract new customers. And thanks to the subsidy you don't have to pay a fortune for it.

Want to know more about the financial benefits? Then read our blog on the fuel savings when switching to electric fatbikes.

What subsidies and tax schemes are available?

In the Netherlands, there is no direct national purchase subsidy for electric bikes as there is for cars. Nevertheless, there are interesting options for entrepreneurs to arrange your business fatbike subsidy. In fact, the benefits are mainly in tax schemes and local initiatives. Below you will find the most important options.

Small-scale investment deduction (KIA)

The KIA is one of the most immediate tax advantages. With it, you deduct up to 28% of the investment amount from your profit. So that lowers your taxable profit and thus you pay less tax. For a €3,199 fatbike, that quickly saves hundreds of euros. The KIA applies when your total investments in one year exceed €2,901 (excluding VAT).

Environmental investment allowance (MIA) and VAMIL

The MIA provides an additional deduction percentage for environmentally friendly investments. Electric bicycles for business use are on the Environmental List of the RFO. This allows you to deduct up to an additional 45% from your profit. VAMIL also gives you the freedom to decide when to depreciate. This is useful if you want to reduce your profits in a particular year.

VAT refund

As a VAT taxpayer, you claim a full refund of the VAT on the purchase. That is directly 21% of the purchase price. In the case of a STOER CargoX of €6,495, for example, results in a savings of over €1,364. Do you also use the fatbike privately? Then you do have to apply a correction in proportion to your business use.

Municipal and provincial grants

Many municipalities have their own incentives for sustainable business mobility. These local subsidies vary by municipality and you can often combine them with the national tax schemes. In cities like Amsterdam, Utrecht and Rotterdam, there are regular programs that offer up to €2,000 in subsidies for the purchase of an electric bicycle. So always check your municipality's website for current opportunities.

Want to know more about all the tax advantages? Then read our blog on tax benefits of a business electric bike.

Check your application requirements for business fatbike grant

Before you apply for a business fatbike grant, you must meet a number of requirements. These vary by scheme, but fortunately there are clear basic requirements. By checking these in advance, you can avoid having your application rejected.

Business registration and financial requirements

Your company must be registered with the Chamber of Commerce. Most schemes require an active Chamber of Commerce registration. Check that your company details are up to date before you start your application. Also make sure you have recent financial statements and VAT returns on hand.

Technical requirements for the fatbike

The fatbike must meet specific technical requirements. The maximum motor power must be 250W and the pedal assistance stops at 25 km/h. In addition, the bike must be CE certified. All models of STOER Bikes, such as the CityX and UrbanX, comply with these European regulations. As a result, you don't have to worry about this.

Proving business use

You must use the fatbike for business purposes. You must be able to demonstrate that the bike contributes to your business activities. Think of customer visits, deliveries, service rounds or commuting. Purely recreational use does not qualify. A trip log is very useful to document your business use.

Note that most regulations apply only to new fatbikes. Used bikes almost never qualify. Also, buy the fatbike only after your grant application has been approved, as advance purchases are usually not reimbursed.

Want to know more about the rules? Then read our blog on The legal rules for electric fatbikes in the Netherlands.

What documents do you need for your application?

Good preparation is half the battle when it comes to your business fatbike grant. Therefore, gather all the necessary documents in advance. This will prevent delays in submitting your application.

You'll need this:

• Chamber of Commerce Excerpt: Not older than 3 months. Download this digitally via CoC.com or request a certified copy.
• Detailed quote: With all fatbike specifications: make, model, motor power, battery capacity and price including VAT.
• Financial documents: Financial statements, VAT returns or an auditor's report, depending on the subsidy scheme.
• Business plan: A brief description of how you will use the fatbike for your business activities.

Tip from Thomas of STOER Bikes: “We like to prepare a quote specifically for grant applications. That way all the information is right there right away and you avoid unnecessary delays.”

Scan all your documents in high quality and store them in a clear folder structure. This speeds up the completion of online forms tremendously. Most systems accept pdf files, so save your documents in that format.

Want to know more about purchasing? Then read our blog about tax advantages of an electric cargo bike for business owners.

Step by step to apply for your business fatbike grant

Now that you have gathered all the documents, you can start applying for your business fatbike grant. Follow the steps below for a smooth application.

Step 1: register your investment with the RFO

For the MIA/VAMIL scheme, register the investment with the Rijksdienst voor Ondernemend Nederland (RVO).. You can do this through the eLoket on the RVO website. You need your DigiD or eRecognition for this. Make sure you have all the specifications of the fatbike at hand.

Step 2: process the KIA in your tax return

You process the small-scale investment deduction in your annual tax return. So you don't have to apply for it separately. Keep a good record of the investments you made during the fiscal year. Your accountant can help you with this so that you get the maximum benefit.

Step 3: apply for local grants from your municipality

Check your municipality's website for local schemes. Many municipalities have their own grant portals where you can submit an application online. Fill out the form properly and completely and upload your documents in the appropriate file formats. Check your application thoroughly before clicking “submit,” as errors in basic information often lead to rejection.

Step 4: reclaim VAT through your VAT return

You process the VAT on the purchase in your regular VAT return to the Tax Office. This immediately gives you 21% of the purchase price. For mixed use (business and personal) you apply a correction in proportion to the private use.

Want to know more about VAT refunds? Then read our blog on reclaim VAT when buying an electric cargo bike.

Here's how to combine schemes for maximum benefit

The beauty of the business fatbike subsidy is that you are often allowed to combine different schemes. This can reduce your net investment by as much as 40% to 60%. Let's illustrate this with a math example.

Calculation example: STOER UrbanX business purchase

* The exact tax benefit depends on your tax bracket and total earnings. Always consult with your accountant for a customized calculation.

“Many business owners are surprised how much they save,” says Thomas. “With KIA alone, you get up to 28% back. Combine that with MIA and local subsidies, and your fatbike suddenly becomes very affordable.”

Want to know more about ROI? Then read our blog on European grants for sustainable business mobility.

Common mistakes when applying for business fatbike subsidy

When applying for a business fatbike grant, sometimes things go wrong. Fortunately, you can avoid most mistakes if you know them in advance. Here are the most common pitfalls:

• Late notification to the RFO: For MIA/VAMIL, you only have 3 months after purchase to register your investment. If you miss this deadline, you miss out on the benefit.
• Fatbike buy before grant approval: With municipal grants, you often have to wait until your application is approved. If you buy earlier, the purchase falls outside the scheme.
• Incomplete documents: A missing attachment delays your application. So always check that you have attached all the requested documents.
• Not keeping trip records: Without proof of business use, you could lose your tax benefits in the event of an audit. Therefore, keep track of your trips from day one.
• Wrong VAT adjustment: In the case of mixed use, you must correct the VAT pro rata. If you don't do this correctly, you risk an after-tax bill.

Want to know more about setting up your administration properly? Read our blog about implementing a business bicycle policy.

Company bicycle: an alternative to direct subsidy

In addition to direct business fatbike subsidy, the company bicycle scheme a very attractive option. Since 2020, this regulation has been greatly simplified. As an employer, you offer your employees a fatbike that they can use for both business and private use. The additional tax is only 7% of the recommended retail price per year.

For a €3,199 STOER UrbanX, that means an annual addition of just €224. That's barely €18.66 per month in additional taxes for your employee. Compared to a leased car, this benefit is huge.

Are you a self-employed person? Then you can put the fatbike on your business if you cycle at least 10% business. You then deduct all costs: purchase, maintenance, insurance and repairs. You claim the VAT back via your sales tax return. Only the addition of 7% can be added to your profit.

Another option is leasing. With a leasing arrangement, you pay a fixed monthly fee. This is convenient if you don't want to make a large investment all at once. The monthly cost is between €65 and €150, depending on the model and lease term.

Want to know more about leasing options? Then read our blog on legislation and tax benefits for electric fatbikes.

Why choose a STOER fatbike as a means of business transportation?

When applying for a business fatbike grant, you naturally want to invest in a bike that will last for years. STOER Bikes' models are designed specifically for that. In fact, all STOER fatbikes have a Gates CDX belt drive instead of a traditional chain. That belt is maintenance-free, lasts much longer and works in all weather conditions. That saves you a lot of maintenance costs in the long run.

The UrbanX (€3,199) and CityX (€3,299) are equipped with a 720Wh battery and a Bafang 250W motor. This allows you to ride 80 to 100 km on one charge. The thick fatbike tires give you extra grip and stability, even on wet roads or cobblestones. For companies that have heavier transports, the CargoX cargo bike (from €6,495) a strong choice. With 92Nm of torque and 150 kg of payload, you'll effortlessly transport heavy loads around town.

All models have PIN code immobilizer and GPS functionality. That gives you extra security for securing your business investment. And through STOER Bikes, you can also get a customized bicycle insurance take out, with 3 years of new value coverage and no deductible in case of theft.

Want to try out the bike first? Then schedule a free test drive at a dealer near you.

Track your application and prepare for approval

After submitting your business fatbike grant, you will receive a confirmation with a reference number. Keep this number safe, as you will need it for all communication about your application. Check your inbox regularly for updates.

The review process for municipal grants usually takes 4 to 8 weeks. In busy times, it may take a little longer. Some municipalities offer online tracking that allows you to track the status. You simply process the tax schemes (KIA, MIA/VAMIL) in your tax return, so you don't have to wait for that.

Upon approval of a municipal grant, you will receive an award decision. Read the terms and conditions carefully. Usually you have to use the fatbike for a certain period of time for business purposes and you are not allowed to sell it. If you do not comply with this, the subsidy can be reclaimed.

Once everything is finalized, you can order your fatbike. See the full collection of STOER Bikes to choose the model that best suits your business needs.

Frequently Asked Questions

Can I apply for multiple grants at the same time for one business fatbike?

Yes, in many cases you can combine local municipal subsidies with national tax schemes such as KIA and MIA/VAMIL. However, always check the conditions of each scheme, as some exclude combination. If in doubt, seek advice from your accountant or the subsidy provider itself.

What happens if my grant application is rejected?

If rejected, you will receive a motivation with the reason. You can often file an objection or make a new application after you resolve the problems mentioned. Some municipal schemes have multiple application rounds per year. Your tax benefits through KIA, MIA and VAT are independent of this.

How long must I use the subsidized fatbike for business?

Most municipal subsidies require business use for 3 to 5 years. During that period, you may not sell the fatbike. Check the exact conditions in your grant decision. For tax regulations, the fatbike remains part of your business assets as long as you use it for business purposes.

Do I have to pay VAT on the grant amount?

Grants are generally VAT-free. This varies by scheme and depends on your VAT status. Consult your accountant or the Tax Office for advice on the tax treatment of grants in your specific situation.

Can I also get a business fatbike subsidy as a self-employed person?

Yes, definitely. As a zzp'er you benefit from the same tax schemes as other entrepreneurs: KIA, MIA/VAMIL, VAT refund and possible local subsidies. You do need to use the fatbike for at least 10% business use to qualify it as a business asset.

How do I prove that I am using the fatbike for business purposes?

Keep trip records with date, destination and business purpose of each trip. Also keep invoices for maintenance and insurance in company name. In case of audits, the IRS or grant providers may ask for these supporting documents.

What if I already bought the fatbike before grant approval?

With municipal grants, advance purchases are usually not eligible. So always wait for the grant decision. For the MIA/VAMIL the opposite applies: there you buy first and then report the investment (within 3 months) to the RVO.