Selling a company car as an entrepreneur: a complete overview

As a self-employed person or company, selling your company car is different from selling a private car. You have to deal with VAT, possibly warranty and specific invoice requirements. This step-by-step plan guides you through all aspects, so you can make a well-considered choice and don't leave money on the table.

Step 1: understand the VAT rules when selling your company car

Business sales are usually subject to VAT. The VAT rate depends on how you originally purchased the car. If you fully deducted the VAT, you must charge 21% VAT on the sale. If you could only partially deduct the VAT (for example 50% for passenger cars), you may apply the VAT tolerance: you charge half of the VAT, i.e. 10.5%. This can result in significant savings.

If you sell to a private individual, you state the VAT on the invoice, but the private individual cannot deduct it. If you sell to a dealer or car buying service, the VAT is often deductible for them, which offers room for negotiation. Make sure your invoice always contains the legally required details: 'VAT-liable sale' and the correct VAT amounts. For a passenger car with 50% deduction, for example, you note 'VAT 10.5%, 50% of 21%'.

Step 2: selling to a private individual, these are your obligations

If you sell your company car to a private individual, you are considered a professional seller in the eyes of the law. This entails a legal warranty obligation: you must guarantee against hidden defects for two years. The private individual can hold you liable for defects that were not visible at the time of sale. This risk is real and can lead to high costs. Therefore, consider having a detailed inspection report drawn up and selling the car 'as is', although the warranty for hidden defects often remains in place. A better option is to sell to a car buying service that purchases company cars, because then you do not have to provide a warranty to a consumer.

Step 3: selling through a dealer or car buying service

If you choose to sell to a professional car buying service or dealer, the demanding warranty obligation towards private individuals no longer applies. Moreover, the transaction usually goes faster: you quickly receive an offer, the handling is businesslike and payment is guaranteed. A recognised company car buying service knows the tax rules and can even help you with the VAT handling. Often the car is picked up directly and you receive your money within a few days. This saves you advertising costs, test drives and negotiation frustrations.

Step 4: what if you want to take over the car privately?

Sometimes as an entrepreneur you want to buy your own company car privately, for example when closing down the business. The tax transition from company to private requires a careful valuation and invoicing. You invoice the sale from the company to yourself, including VAT. The price must be in line with the market, otherwise the tax authorities may consider this a benefit in kind. If necessary, have the value appraised to avoid discussions.

Step 5: the administrative handling

For a smooth sale you need the following documents: the registration certificate (vehicle registration document), the certificate of conformity, the latest inspection certificate, and maintenance invoices. Inform your insurer about the suspension or termination of the policy. When selling to a car buying service, the transfer is often arranged for you. Don't forget to adjust the VAT return: the sale must be included in your periodic VAT listing.

Step 6: determine the value of your company car

A realistic price determination is crucial. Take into account age, mileage, maintenance history and any damage. Online valuation tools give an indication, but a physical inspection is more accurate. Do you want a market-conform offer quickly and without hassle? Then request a free valuation right away. An expert will visit you or you can submit the details online, and you will receive a non-binding proposal.