Mileage log

It is presumed by the legislator that any employee whose employer provides him or her with a company car is at liberty to use the vehicle for private purposes. This calls for the employee’s taxable income to be augmented accordingly where the number of miles driven in a private capacity exceeds the annual maximum of 500 kilometres, as substantiated by the employee’s mileage log. The Tax and Customs Administration upon an employee’s request will provide the latter with a “zero private use” certificate, which although it does not discharge the employee in question from keeping a mileage log does exempt his or her employer from topping up the employee’s taxable income. The Implementing Regulations to the Wages and Salaries Tax Act 2001 of the Netherlands list the requirements to be met by a mileage log in order for it to be admitted as evidence. The following details are required to be included:

• make and type of vehicle, registration number;
• term throughout which vehicle has been made available;
• per individual trip:
  • (a)   date,
  • (b)   starting and finishing mileages,
  • (c)   starting point and final destination,
  • (d)   alternative route taken if any,
  • (e)   nature of trip (business or private).

Reconciliation and accuracy are essential in order for a mileage log to “make the grade”. Invoices raised by the mechanic shop in connection with maintenance and repair work on the car may help substantiate the log.

The Hague District Court dismissed an employee’s retroactively submitted mileage log, arguing that the log was insufficiently accurate to serve as conclusive evidence. The log in question did not enable the trips made, itineraries taken or distances covered by the employee in question – who had no other proof at his disposal – to be properly identified, nor was the Court swayed when the employee swore up and down that he had most definitely not used the company car for any private trips and in fact owned his own private car.

If you could use a little help when it comes to your payroll records or the additions to be made in connection with the private use of company cars, please do not hesitate to get in touch with us using the contact page.

Dutch version: Het bijhouden van een rittenregistratie