The Association of Business Drivers is proposing a new standard for the kilometer allowance. According to the interest group, the maximum untaxed kilometer allowance of € 0.19 cents per kilometer almost never covers the actual car costs. With the amended standards, the VZR wants to provide a ‘clear and objective’ framework for the kilometer allowance.
According to the VZR, employers often adopt the maximum untaxed kilometer allowance of € 0.19 cents per kilometer as the benchmark. The association calls this ‘nonsense’, because the employer can determine the compensation independently. That € 0.19 is almost never fully cost-effective, not even for the variable costs, according to the VZR. She also argues that the employer must also pay an ‘availability surcharge’, an amount per kilometer for making your private car available to the employer. That is actually what happens when you drive business kilometers in your own car.
The measure used by the VZR for the kilometer allowance is made up of the weighted average between the variable costs and the fixed plus the variable costs. This results in three amounts, depending on the catalog value of the car. For cars under € 20,000 the recommended fee is € 0.24 cents per kilometer, with a catalog value of between € 20,000 and € 40,000 this amount increases to € 0.37. The last category is for cars above € 40,000. In that case, the proposed reimbursement is € 0.49 cents per kilometer. The framework for the kilometer reimbursement does not immediately mean that you can rub your hands. With these indications, the VZR only offers a ‘clear and objective’ framework for making agreements with your employer about the kilometer allowance.