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VAT on car insurance

Many people assume that VAT has to be paid on car insurance. VAT stands for Value Added Tax. The government levies VAT on goods and services.

In the Netherlands, you don't pay VAT on insurance. As a result, it is also not possible to deduct VAT. However, you do pay 21% insurance tax on insurance premiums. This percentage corresponds to the high VAT rate, which is also 21%. For this reason, many people mistakenly think that VAT is paid on insurance policies.

Insurance tax

So you don't pay VAT on car insurance, you pay insurance tax. Insurance tax is a tax on insurance and is not deductible, even if you only use the car for business.

VAT car insurance

Car insurance excluding VAT

There is a difference in the VAT on insurance and the VAT you pay when you buy a (van) car. In fact, you can insure a car excluding VAT. In most cases, an entrepreneur can deduct VAT on business expenses. This also applies to a van. It is therefore smart to insure your van excluding VAT. The VAT can be reclaimed from the tax authorities. When you insure your van excluding VAT, it means that the insured amount is lower and the premium will be cheaper as well.

Note! If you choose to insure your van exclusive of VAT, then you must also take this into account in case of damage. In that case, a claim payment will also be made without the 21% tax.

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Compare auto insurance policies on Alpina.nl

Comparing car insurance can save you a lot of money on an annual basis. Through Alpina you can easily compare different insurers on price and content. At Alpina, we have 50 years of experience in comparing and arranging car insurance. Using the license plate number, we can find out all the details of your car. After entering a few details and the number of years without claims, the comparison can begin.

Calculate your car insurance premium directly!

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  • To calculate premiums, we need the zip code of the primary driver. For private use, the youngest driver must reside at the same address as the applicant. In case of business use, you can enter the postal code of the company here.

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