The Dutch Entrepreneur's Tax Hack: How to Cut Costs on Equipment & Green Investments
Every year, Dutch business owners leave money on the table by missing out on three powerful tax schemes:
💰 KIA (Small-scale investment deduction) – Get 28% back on tools/equipment
🌱 MIA (Environmental deduction) – Up to 36% off eco-friendly assets
⚡ EIA (Energy deduction) – 45% savings on energy-efficient gear
Whether you’re a freelancer buying laptops, a plumber upgrading vans, or a cafe switching to solar power, this guide shows how to turn everyday investments into tax savings.
1. Small-Scale Investment Deduction (KIA)
If your business invests in qualifying assets or inventory, you could benefit from the small-scale investment deduction (Kleininvesteringsaftrek, KIA).
Key Conditions:
- Minimum investment: €2,901 (excluding VAT) per fiscal year
- Per-asset limit: Each asset must cost less than €450 (excluding VAT)
How It Works:
- The deduction is 28% of the invested amount (excluding VAT)
- Example: If you invest €5,000, you can deduct €1,400 (28% of €5,000) from your taxable profit
Note for Partnerships:
If you operate as a general partnership (VOF) or partnership (maatschap), the deduction is calculated based on the total joint investment, then divided proportionally among partners.
2. Environmental Investment Deduction (MIA) & VAMIL
Investing in eco-friendly business assets? The Environmental Investment Deduction (Milieu-investeringsaftrek, MIA) and VAMIL (arbitrary depreciation) can provide tax benefits.
Eligibility:
- Assets must be new and listed on the official government register (recognized by the Ministry of Infrastructure & Water Management and the Ministry of Finance)
- Cannot be combined with the EIA for the same asset, but can be combined with KIA
VAMIL Scheme:
- Allows flexible depreciation (you decide when to deduct a portion of the investment)
- Helps improve cash flow by accelerating tax benefits
3. Energy Investment Deduction (EIA)
If you invest in energy-efficient business assets, the Energy Investment Deduction (Energie-investeringsaftrek, EIA) can reduce your taxable profit.
Key Points:
- Applies only to new, energy-saving assets (check the approved list)
- Cannot be combined with MIA for the same asset, but can be used alongside KIA
Real-World Examples: How Businesses Benefit
Freelance Graphic Designer (KIA Focus)
Scenario:
- Buys laptop (€1,200), desk (€300), printer (€250)
- Total: €1,750 (Below €2,901 KIA threshold)
Smart Move:
Invests extra €1,151 in software/chair → reaches €2,901
Saves: 28% deduction (€812)
Eco-Conscious Bakery (KIA + MIA + VAMIL)
Investments:
- €5,000 energy-efficient oven (EIA: €1,800 back)
- €4,000 solar panels (MIA: 27% = €1,080 + VAMIL flexibility)
- €3,000 small tools (KIA: 28% = €840 if threshold met)
Result:
✔ Lower energy bills
✔ €3,720+ in tax savings
Dairy Farm (EIA Power)
Game-Changer Investment:
- €20,000 energy-cooling system
EIA Deduction: 45% = €9,000
- €3,000 milking equipment (Potential KIA: €840)
Bottom Line:
€9,840 savings + future energy cost cuts
Electrician (Maximizing All Schemes)
| Investment | Scheme | Savings |
|---|---|---|
| €4,000 cable tools | EIA | €1,800 |
| €1,500 solar tools | MIA | €405 |
| €2,901 small tools | KIA | €812 |
| Total Saved | €3,017 |
Pro Tip: VAMIL lets them deduct 75% of solar tools in Year 1 for instant cash flow boost.
Key Takeaways:
- Small purchases add up – Track every sub-€450 item
- Go green, save more – MIA/EIA offer biggest deductions
- Plan strategically – Combine schemes where possible
Maximizing Your Tax Benefits
- Plan investments strategically - combine KIA with MIA or EIA where possible
- Keep records of all investments and check official lists for eligible assets
- Consult a tax advisor to optimize deductions based on your business structure
Have you used any of these schemes? Share your experience in the comments!
Why These Deductions Matter:
- 🛠️ Tradespeople (plumbers, electricians) can benefit significantly from combined deductions
- 🌱 Eco-friendly investments get extra incentives
- 💰 Small purchases add up to meet KIA thresholds
Pro Tip: Always check the current year's thresholds and approved equipment lists as they may change annually.