Fixed assets (vaste activa)
Fixed assets are assets that are used or held on a lasting basis for the business. They comprise intangible, tangible and financial fixed assets.
What do fixed assets (vaste activa) mean?
Fixed assets are assets that are used or held on a lasting basis for the business. They comprise intangible, tangible and financial fixed assets.
The purpose of use determines the category. A car for own use is fixed; the same car at a car dealer may be inventory. Valuation differs per category.
How does it work?
art. 2:364(1) DCC divides the assets by purpose: fixed is what serves the activity of the legal entity on a lasting basis, current is the rest. It is therefore about use, not the type of item. There are three groups (paragraph 2): intangible fixed assets such as goodwill and development costs (art. 2:365 DCC), tangible ones such as buildings, machinery and equipment (art. 2:366 DCC) and financial ones such as participating interests and long-term receivables (art. 2:367 DCC).
Assets with a limited useful life are depreciated every year under a system aligned with that useful life (art. 2:386(4) DCC); in case of a lasting decline in value an extra write-down follows (art. 2:387(3) DCC). The movement of each item, from opening balance via investments and depreciation to closing balance, is shown in a reconciling schedule (art. 2:368(1) DCC).
Example
A BV starts the year with € 230,000 tangible fixed assets: a building of € 200,000 and machinery of € 30,000 (book values). During the year it buys a machine of € 40,000 and sells an old one with a book value of € 5,000 for € 7,000. Depreciation: building € 8,000, machinery € 12,000. Movement: 230,000 + 40,000 − 5,000 − 20,000 = € 245,000 at 31 December. The sale yields 7,000 − 5,000 = € 2,000 book profit.
In the annual accounts
Assets side of the balance sheet, with detail depending on size class.
Difference from current assets
Fixed assets are used, current assets are sold, consumed or collected. The same van is a fixed asset at the plumber and inventory at the car dealer. The distinction steers the valuation: fixed assets are depreciated, current assets are written down as soon as the current value falls below cost (art. 2:387(2) DCC).
Common mistakes
- Booking resale inventory as a fixed asset
- Skipping depreciation
What to watch for
- Set a capitalisation threshold and apply it the same way every year.
- Reconcile the asset register with the general ledger and check that everything is still there: sold and scrapped assets must be removed.
- A micro entity shows one total of fixed assets (art. 2:395a(4) DCC). A small entity shows the three groups, but need not include the movement schedule (art. 2:396(3) DCC). Medium-sized and large entities give the full movement per item; see tangible fixed assets.
Legal basis and sources
art. 2:364–367 DCC
Frequently asked questions
From what amount must you capitalise a purchase?
The law names no amount for the annual accounts. What decides is whether the asset serves the company on a lasting basis and is significant for the true and fair view.
Is land depreciated?
As a rule no. Depreciation is prescribed for fixed assets with a limited useful life (art. 2:386(4) DCC), and land does not wear out.
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Preparing Dutch annual accounts?
Your first set of annual accounts is free, for every size class. Create an account and prepare the annual accounts of your Dutch company under Title 9 of Book 2 of the Dutch Civil Code.
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