A company bicycle, what about tax?

You avoid traffic jams, and in a healthy and ecological way too. No wonder the (electric) bicycle is more popular than ever. As a self-employed person, it can be a great alternative to a company car. Or an addition, as it can be combined with other means of transport. Let's cycle through the tax advantages together.

A company bicycle: 100% deductible

Whether you buy or lease your company bicycle, the cost is 100% deductible (until 2021 it was even 120%). As with the company car, you write off a company bike over at least three years. You can use the bike as a self-employed person yourself, or provide it to an employee for their commuting.

Other cycling costs, such as a helmet, bike bag, maintenance, repairs and bike insurance are also 100% deductible.

No benefit in kind

A company bike isn't seen as a benefit in kind, provided the bike is used for commuting and/or company travel. This means that you or your employee are exempt from tax on the provision of the company bicycle.

Tax-free bicycle allowance

The company bicycle also entitles you to a tax-free bicycle allowance. For income year 2023, this amounts to € 0.27 per kilometre driven.

21% VAT, deductible for professional use

In 2019, it was announced that VAT on a bicycle would be reduced to 6%. In 2021, the government backtracked on this. The argument was that bike suppliers might use the VAT reduction to raise their prices, and therefore consumers would not benefit from the VAT reduction. Long story short: you still pay 21% VAT on the purchase of a two-wheeler.

Of course, as a self-employed person, you have the advantage that this VAT is deductible. Therefore, be sure to ask the supplier for a VAT invoice. Just keep in mind that private trips are not VAT deductible. The general rule applies: the VAT is deductible to the extent that the bike is used professionally.

Which bikes are eligible?

Here, the rules have been relaxed. Today, you can buy or lease any kind of bike, with all the tax advantages as discussed above. Whether you choose a sporty racing bike, mountain bike, a sturdy city bike, a regular electric bike (up to 25km/h) or a speed pedelec (up to 45km/h), the tax benefits are the same.

Some considerations

Since an (e-)bike is 100% deductible, and the bicycle allowance is higher than for a car, it is therefore definitely a tax recommendation. Are you considering buying one for your business? Then consider the 3 points below first: