Measures for cars & mobility

On Budget day, September 18, 2018, the government presented the tax proposals for the coming year. Mazars outlined some of the bills. Read all about the new tax measures and find out what it means for you.

Company bicycle

As of 1 January 2020 there will be a fixed addition for a bicycle that is made available to an employee. The fixed addition will be 7% of the recommended retail price of the bicycle, in which no distinction is made between the various types of bicycles. The fixed addition imputed applies if the bicycle is made available for private use, including commuting. There is no entitlement to a tax-free allowance for any private kilometres or business kilometres travelled with the employer-provided bicycle. Similar schemes will be introduced for the entrepreneur and recipient of income from other activities.

End of BPM refund scheme

To encourage the buying of environmentally friendly cars, it is proposed to discontinue the private motor vehicle and motorcycle tax (BPM) refund scheme for taxis and public transport (OV) with effect from 1 January 2020. According to the scheme, the BPM refund is granted upon request for passenger vehicles used entirely or almost entirely for public transport or taxi services within the meaning of the Dutch Passenger Transport Act 2000. Exemption of motor vehicle tax for taxis and public transport is not being abolished. By abolishing the refund scheme, the Tax and Customs Administration’s approvals policy for certain voluntary transport projects and the BPM refund scheme are being discontinued.

Polluters pay more

Environmental differentiation in the Heavy Motor Vehicles Taxation Act (Wbzm) is being updated to ensure that the more polluting heavy duty vehicles at home and abroad are going to pay more tax. The current rate will continue to apply for the cleanest heavy duty vehicles. Agreement was reached on this measure with the Eurovignette countries. The change means a further differentiation according to the EURO emission standards and an increase in rates for less clean heavy duty vehicles. The new rates enter into force as from 1 July 2019 provided that the ratification procedure has been finalized by 31 May 2019. The EURO V regulation will then be increased as from 1 January 2020. If that fails, then all new rates enter into force on 1 January 2020.

Motor Vehicles Memorandum (Implementation) Act II postponed

The surcharge for diesel engines with a fine dust emission of more than 5 milligrams per kilometre, which would have been introduced as of 1 January 2019, has been postponed. Necessary automation at the Tax and Customs Administration is only expected to be ready as of 1 January 2020.

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