Investment deduction (KIA) and your business motorcycle
Buying a motorcycle for your business is not just an expense, it is an investment in an asset that you own, use and eventually sell. The Dutch tax system treats investments in business assets favourably, and a motorcycle can sit comfortably inside that logic.
A note up front: this article is general information, not tax advice. Thresholds, percentages and eligibility change and depend on your situation. Always confirm with your own accountant or tax adviser.
The investment deduction in one paragraph
The small-scale investment deduction, known as KIA, rewards entrepreneurs for investing in their business. When your total investments in a year fall within certain limits, you may deduct an extra percentage of that investment from your profit, on top of the normal depreciation. A motorcycle bought as a business asset can count toward that total.
How it fits a motorcycle
Because a motorcycle on the books is a genuine business asset, its purchase can be part of the investment total that determines your deduction. Whether you actually benefit, and by how much, depends on everything else you invested that year and on the thresholds in force. This is exactly the kind of number your accountant will want to optimise across your full set of investments.
Depreciation: spreading the cost
Alongside any investment deduction, you depreciate the motorcycle over several years, accounting for a residual value at the end. This is where a custom build quietly helps. A well-built, documented machine holds its value far better than an average vehicle, which keeps your depreciation realistic and your balance sheet honest. We dig into that durability in buy-back guarantee and residual value.
A new bike or a custom, the principle is the same
For the investment logic, what matters is that you are investing in a business asset. That holds whether you buy a new motorcycle or commission a custom build. The way the purchase and the build work are booked is a detail for your accountant, not a barrier to the deduction.
The bigger picture
Investment deduction and depreciation are the balance-sheet side of a motorcycle on the books. Combine them with no benefit-in-kind, low road tax and reclaimable VAT on parts, and the full case becomes clear in the complete guide to riding a custom motorcycle through your business. Run your own numbers on the business riding page.
Reminder: general information, not tax advice. Thresholds and eligibility depend on your situation. Always confirm with your own accountant or tax adviser.
Frequently asked questions
What is the small-scale investment deduction?+
The small-scale investment deduction, KIA for short, is a deduction that lets entrepreneurs deduct part of their investment in business assets on top, provided the total falls within certain limits. This is general information and not tax advice.
Does KIA apply to a business motorcycle?+
A motorcycle you acquire as a business asset can count toward the investment deduction, provided the conditions and thresholds are met. Whether it applies in your case and how much depends on your total investments that year. Get advice.
What about depreciation?+
A business motorcycle is generally depreciated over several years, taking a residual value into account. A well-built custom often holds its value well, which keeps depreciation realistic and your balance sheet healthy.
Does a custom build count differently from a new motorcycle?+
For the investment deduction it is about the investment in a business asset, whether that is a new motorcycle or a custom build. You confirm the bookkeeping of the purchase and the work with your accountant.