Tax-break scheme bicycle

Because of the tax benefit under the tax-break scheme, the price of purchasing a bicycle is significantly reduced. Depending on your income, the amount of the benefit ranges from 37% to 52% of the price.

Tax benefit

The tax benefit derives from the so-called gross-net gap. This method involves lowering your gross salary by the bicycle's purchasing price. The same amount is subsequently paid out to you tax-free. You can benefit from this gap by lowering your gross salary.
Lowering your gross salary slightly reduces the amount of associated entitlements and allowances such as your holiday or year-end allowance. Since your gross salary will be reduced, your social security contributions will also be lower, which may affect your possible unemployment or incapacity benefit.

You can take advantage of the bicycle tax-break scheme even if you are using the NS Business Card or the mileage reimbursement.

Conditions

  • Every three years you can use the tax-break scheme to purchase a bicycle with a purchasing price of up to €1,500 (including VAT). The bicycle's purchasing price may exceed this amount, but the tax-free reimbursement is limited to €1,500;
  • Every calendar year you can purchase accessories such as a chain lock or rainwear, or claim repair costs up to €82 (including VAT). Reimbursements for bicycle accessories to be purchased in subsequent years will only be arranged on an annual basis, even if you fail to use up the yearly limit of €82;
  • You can get a bicycle insurance for a value of up to €1,500, a 3-year period at most. Please note: a bicycle insurance for a tax-break scheme bicycle is not compulsory.

Choice of bicycle

You can purchase the bicycle from your selected supplier. Your supplier must be registered in the trade register of the Chamber of Commerce. This scheme applies as well to second-hand bicycles electrically assisted pedal cycles or e-bikes, in so far as they have been purchased from a certified supplier entered in the trade register of the Chamber of Commerce. Excluded from this scheme are bikes that require a helmet, which are instead regarded as motorised bicycles (up to 25 kph) or mopeds (over 25 kph).

Procedure

You can apply for the tax-break scheme bicycle using the form (see below) and upload the appendices in this. You can also apply for bicycle accessories using this form. The appendices are:

1) An invoice stating at least the following details:

  • type, make and frame number;
  • list price and purchasing price (including VAT);
  • supplier's name;
  • supplier's registration number at the Chamber of Commerce;
  • specifications of the bicycle accessories;
  • type and cost of the bicycle insurance (not compulsory).

2) The policy schedule for the bicycle insurance.

Application form tax-break scheme bicycle

You can purchase the bicycle, the insurance and any additional accessories from your selected supplier. As soon as the AC has received and verified your documents, the reimbursement of the net amount will be arranged.

Chapter L "Employment terms and conditions options menu' of the CAO HBO contains information on the possibility of using holiday hours to purchase an electrical bicycle. You can use a maximum of 90 holiday hours. One hour amounts to 1/138th of the gross monthly salary on a full-time basis. The total amount of hours to be used may not exceed the purchase price of the bicycle with a maximum of € 1,500.

Published by  Administration Centre 21 June 2021