Is there VAT on parking charges?
Municipal parking tax for on-street parking does not include VAT. A parking garage or car park operated as a VAT-taxable service generally does have VAT on the invoice. That can also be a municipal garage: therefore, only the name of the owner is not decisive. Check the parking receipt.
Worked example: A commercial parking ticket states €12.10 including 21% VAT. The VAT portion is €12.10 × 21/121 = €2.10. You may only claim this back to the extent that the expenditure is used for your VAT-taxable activities and you meet the conditions for deduction.
Reclaiming VAT on parking charges
Assess the VAT deduction separately from the deduction of your profit. You need a suitable receipt or invoice and the expense must relate to taxed turnover. In the case of private use, exempt activities or the scheme for small businesses, deduction may be absent. Commuting is considered private use for VAT purposes.
Commercial car park
Keep the receipt or invoice showing the VAT amount. If you use a parking app, check the parking tax and any VAT-taxed service or subscription costs separately on the statement.
Municipal car park
If you pay municipal parking tax, there is no VAT to reclaim. The processing as business expenses then depends on your choice of car. A municipal multi-storey car park can be subject to VAT; therefore, check what is stated on the invoice.
Deducting parking costs
Parking costs are business expenses when you incur them for your business. The way you deduct them depends on how you use your car. The tax authorities distinguish between a car that belongs to your business assets and a private car that you use for business purposes. You process both situations differently in your administration and you may not include parking costs twice.
Company car
Do you use a business car, then you may deduct all parking costs from your profit. The Tax and Customs Administration classifies parking expenses as car costs. This lowers the taxable profit; the impact on tax depends on your overall situation. Any private use is corrected later via the addition when you drive more than five hundred kilometres privately.
Private car
If you use a private car for business trips, you may not deduct your parking costs separately. You process car expenses via the kilometre allowance of €0.25 per business kilometre in 2026. This rate includes all car costs, including parking. You therefore cannot claim parking costs separately as business expenses against your profits.
Need receipt or invoice?
For a maximum of €100 including VAT, a simplified invoice will suffice. This must show the date, name and address of the supplier, the service provided and the VAT amount or the details you need to calculate it. Your company name is not a mandatory field for this type of invoice.
For higher amounts, you generally need a full invoice. Keep the receipt together with the purpose and date of your business journey. A bank statement alone does not contain all the invoice details.
Processing in your accounts
- Company car: allocate parking costs to the vehicle expenses and process any private use adjustments.
- Private car: For income tax purposes, deduct the mileage allowance; parking is included. Do not deduct the same parking expense from profits again.
- VAT: Any deductible VAT on business parking must be assessed separately for the VAT return. No separate deduction for business profits does not automatically mean no VAT deduction.
- No VAT on the receipt: do not calculate VAT on municipal parking tax yourself.
The Dutch Tax and Customs Administration outlines the VAT rules for business use of a private car.
