As an entrepreneur, you can pay the VAT on a electric cargo bike fully reclaim when you purchase it for business purposes. The standard VAT refund in the Netherlands is 21% of the purchase price, which is a significant savings. To do this, you must be able to prove that the cargo bike is used primarily (>90%) for your business. In the case of mixed use, modified VAT deduction rules apply. In addition to VAT refunds, you may also benefit from investment deductions and various subsidies.
Purchasing an electric cargo bike provides multiple tax advantages on the one hand, and significant savings on the other. This therefore makes the investment more attractive and also more advantageous for entrepreneurs.
"Entrepreneurs are often surprised how much they get back," says Joeri of STOER Bikes. "So with tax breaks you sometimes pay half as much ánd on top of that you make a profit."
VAT refund: As a business owner, you reclaim 21%'s VAT in full, so instant discount and also less investment.
Small business investment allowance (KIA): This scheme lets you deduct a percentage, which depends on investment as well as annual amount. So the percentage goes up to 28% and moreover this applies to investments between €2,500 and €63,000.
Environmental Investment Allowance (MIA): Electric cargo bikes are on the Environment List, so you receive additional deductions and also on top of normal depreciation. So for transport bikes, 36% usually applies and also a stable percentage.
Depreciation: You write off the electric cargo bike according to rules, usually in five years and in addition 20% annually. So this means spreading costs and reducing tax liabilities.
ZZP'ers and sole proprietorships have the same advantages and identical rules. This applies provided you use the cargo bike for business purposes and prove it correctly. In case of mixed use your VAT refund will be calculated pro rata and accurately.
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?“
Reclaiming VAT on the one hand is done through a simple process on the other hand under conditions. So you have to follow all the requirements and, moreover, execute them correctly.
"Getting VAT back is actually simple," says Joeri, "because make sure you have a good invoice and also proof of business use. So the tax authorities want to see proof as well as carry out checks."
Step 1: Correct purchase invoice
It must meet all requirements on the one hand, and be complete on the other:
Your company details and VAT number
Specification bakfiets and amount
The VAT amount and additionally details
Supplier data and address
Keep invoice carefully so in administration and also clear.
Step 2: Processing in VAT return
So process VAT refund in regular return ánd moreover correct at question 5b. Fill in the VAT amount and, moreover, allow automatic settlement.
Step 3: Demonstrate business use
For full deduction use your cargo bike primarily for business, so more than 90% AND additionally with proof. Keep trip records and moreover document business trips.
Mixed use: In case of less than 90% business use, you claim back VAT only partially and also proportionally. Calculate percentage and claim only that portion.
Administrative Requirements:
So include bakfiets in active state and in addition administration
Use proper depreciation period, usually five years and moreover according to rules
Keep proof of business use, such as photos and driving records
Want to know more about administration? Then read our blog "8 Main differences between entry-level and premium fatbikes“
For companies, on the one hand, there are several attractive subsidy schemes; on the other hand, they differ from national programs as well as regional initiatives.
"So subsidies can really make a difference," says Joeri. "Some customers receive €3,000 back, and that makes the investment attractive."
Country Grants: The Zero Emission Commercial Vehicles Subsidy Scheme (SEBA) is an important option on the one hand, and a considerable cost saving on the other. This scheme offers up to 40% subsidy and reduces purchase price. Exact conditions appear annually via RVO website and may vary.
Local grants by municipality: Large cities often offer schemes, such as Amsterdam, Rotterdam, Utrecht and The Hague. So local subsidies run into thousands of euros, and what's more, they are often called "Clean and Sustainable Business" or "Climate Fund.
Application requirements mostly:
Quote or purchase invoice and proof of business use
Completed application form and additionally Chamber of Commerce data
Key points of interest: So apply for subsidies early, as they often have to be applied for before purchase. Some schemes have limited budgets, so first come first served.
You often combine subsidies with tax advantages, such as MIA and KIA. So this can make an electric cargo bike 60% cheaper and also more attractive than purchase price.
Want to know more about financing? Then read our blog "Fatbike for adults: which one suits you best?“
When purchasing, you are faced with a choice: buy or lease. Both options have specific advantages depending on your business situation.
"Leasing is becoming increasingly popular," says Joeri. "Especially for startups that prefer to put their money into other things. But established companies are often better off buying."
Purchase:
Financial lease:
Operational lease:
Comparison aspects:
| Aspect | Buy | Financial Lease | Operational Lease |
|---|---|---|---|
| Property | Direct owner | Economic owner | No owner |
| Investment Deduction | Yes (KIA, MIA) | Yes (KIA, MIA) | No |
| VAT benefit | Suddenly reclaiming | Per term | Per term |
| Maintenance | Take care of it yourself | Mostly themselves | Included |
For start-ups, leasing can be attractive. You keep working capital free. Established companies are often better off buying for optimal tax advantages.
Want to know more about different options? Then read our blog:"E-fatbike VS E-bike, what are the differences?“
Calculating Return on Investment helps with an informed decision. By mapping all costs and revenues, you gain insight into true value.
"ROI calculation is crucial," says Joeri. "I always help clients calculate this properly. Usually it turns out much more favorable than they think."
Step 1: Determine total investment Start with purchase price of electric cargo bike. Subtract VAT refund from it. Incorporate tax benefits such as KIA and MIA. Include any subsidies. This gives a net investment.
Step 2: Calculate annual savings
Step 3: Value time savings In busy cities, cargo bike is often faster due to traffic jams and parking space search. Set hourly rate for business. Calculate how much time you save per week or month.
ROI formula: (Total Savings / Net Investment) × 100%
Payback period: Net investment / Annual savings = Number of years
Indirect benefits:
Case study: Electric cargo bike €5,000 costs after VAT, KIA, subsidies net €2,500. Annual savings €1,000 on fuel, parking, maintenance. Payback period: 2.5 years. ROI over 5 years: 100%.
At STOER Bikes We help business owners with customized ROI calculations. That way you know exactly what an electric cargo bike can bring to your business situation.
Want to know more about business applications? Then read our blog: "10 advantages of fatbikes for daily use in the city“