How much VAT is there on taxi rides?
Standard domestic taxi transport is subject to 9% VAT. A driver who transports you in your own car for a fee is subject to 21%. Therefore, check the service and the country to which the proof relates. See the VAT rate for passenger transport.
Example: a domestic business taxi journey costs €54.50 including 9% VAT. The VAT portion is €54.50 × 9/109 = €4.50. If you have full deduction rights, record €50 in travel expenses and €4.50 in input VAT. Do not calculate 9% of the VAT-inclusive price.
When is VAT on taxi costs deductible?
The VAT on a taxi ride is deductible if the ride is business-related and your company has VAT-taxed turnover. The tax authorities look at the purpose of the trip and not at the means of transport. If you use the taxi for private purposes or for commuting, the VAT is not deductible. Similarly, if you have exclusively exempt turnover or use the small business scheme, you may not reclaim VAT.
In practice, VAT on taxi expenses is deductible if all the conditions below are met:
- The taxi ride has a clear business purpose, such as a customer visit or business appointment.
- The ride is not a commute.
- You are liable for VAT on the activities for which you make the trip.
- VAT was actually charged on the trip.
- You have a valid proof of ride.
If the taxi ride does not meet these conditions, the VAT remains part of the costs and you cannot deduct it as input tax.
Need receipt or invoice for deduction?
For public transport and taxi journeys, the travel ticket can serve as an invoice. It does not have to meet all the usual invoice requirements: you may calculate the VAT from the fare yourself if the details support this. Keep the ticket showing the date, carrier, journey details and price. A bank statement alone is usually insufficient. For travel-card statements, see the Tax and Customs Administration’s required information.
VAT at Uber
Even with a ride booked via an app, the actual transport service, the business purpose and the proof are decisive. Normal domestic taxi transport is subject to 9%. Keep the digital ride receipt; simply the name of the platform or a payment notification does not prove the right to deduct. A valid transport document may be sufficient to calculate the VAT from the fare, even if the VAT amount is not printed separately. Do not deduct Dutch VAT on a ride to which it does not apply.
Processing in your accounts
Book the business part as travel expenses and split deductible VAT as input tax. Keep the journey ticket and note the business purpose, for example the client visit. In the case of partial deduction rights, split the VAT in accordance with the usage. Also read the explanation about input VAT and deduct travel expenses.
VAT on other means of transport
Besides taxis, as an entrepreneur you may use other means of transport. Different rules apply for VAT purposes than for taxi transport. Here, the tax authorities distinguish between own transport and public transport. It is important to clearly understand this difference, as it affects your VAT deduction.
Own transport
The business kilometre rate for income tax does not include any VAT that you can deduct as input tax. You assess VAT on the maintenance and use of your private car separately: this may be deductible for use towards taxed turnover. Private use, including home-to-work travel for VAT purposes, is excluded or corrected. See VAT on business use of a private car.
Public transport
Public transport, like taxi, falls under passenger transport with 9% VAT. For business trips, you may deduct this VAT. Here, the transport ticket counts as an invoice. Again, commuting is considered private for VAT purposes and therefore not deductible.
