Pedal to the metal! How do you arrange everything in the best way financially as a business owner?
As a business owner you can also benefit from the various advantages when purchasing a bicycle, speed bike, or e-bike.
Option 1: Reimburse your own bicycle kilometre allowance
As an entrepreneur subject to income tax rules, you may reimburse your business kilometres, including commuting. This reimbursement is tax-free up to a maximum of €0.19 per kilometre. It does not matter which means of transport you choose. The reimbursement thus also applies to travelling by bicycle.
You can use the travel allowance to privately purchase or lease a bicycle. In addition, on rainy days for example, you can use the travel allowance as a contribution to the costs of public transport or that one time you come by car.
Option 2: Company bicycle
You can buy a bicycle for yourself at your company's expense. You can use it for business kilometres and commuting, but also for private kilometres. This scheme is similar to that of a company car. When purchasing a bicycle, e-bike, or speed pedelec, the entire VAT is deductible. You may depreciate the purchase costs over five years with a residual value of 10%. All other costs such as insurance, maintenance, and accessories etc., are directly deductible. If you invest €2,300 to €318,500 in a year as a result of the bicycle, you can make use of the small projects investment credit (KIA). You can then deduct a maximum of 28% extra.
Extra deduction for a speed bike or cargo bike
Most speed pedelecs fall under category B3118. Then there are schemes to maximize the deduction. This also applies to pedelecs that fall under category F-3119 of the environmental investment credit (MIA). This results in an additional deduction of 13.5% (speed bikes) or 36% (cargo bikes). A budget of €124 million is available for MIA in 2020. Secondly, you can choose to depreciate this environmental investment arbitrarily via the Vamil scheme (arbitrary depreciation of environmental investments). For 50% of the investment amount, you can then decide for yourself how quickly or slowly you want to depreciate it. It is even possible to depreciate 75% of the investment in the year of purchase. The remaining 25% can then be written off on a regular basis.
You lease (rent) a bicycle for a fixed period of time. During this period you are not the owner of the bicycle, but you can use it for all purposes. The lease costs are fully deductible, as are the costs for maintenance and accessories.
Rules for a company bicycle
Privately, you pay an annual additional tax liability of 7% of the recommended retail price of the bicycle. You always pay this contribution, even if you don't use your bicycle privately.
If you use a company bicycle, you may also use and reimburse other means of transport. If you choose to travel by car, you can reimburse these travel costs tax-free up to a maximum of €0.19 per kilometre. If you opt for public transport, you may deduct these costs in full.
Try before you buy
We will be happy to lend you an e-bike or speed bike for two weeks to see which bike is most suitable for your commute.
Transport by bicycle
Does your business collect or deliver things? Then an electric cargo bike or transport e-bike might be the answer. Try for yourself and lend one of our e-cargo bikes.