Yesterday was Budget Day, the traditional start of our parliamentary year in which the cabinet plans are announced for the coming year.
On Budget Day, it's not only about the King's Glass Coach, it's also about the necessary tax plans relating to cars. Although some of this is yet to be debated in the House of Representatives and Senate, we have been reviewing the documents for you and listed the car tax news.
Adjustment of travel allowance
The tax-free travel allowance has been set at € 0.19 per business kilometre for years. So it's high time for an adjustment. According to the plans, on 1 January 2023, this exemption will increase to €0.21, and another cent will be added a year later: €0.22. The increase in the exemption will not only affect the employee travel scheme, but as a self-employed person, you will also be allowed to deduct €0.21 per business kilometre from your profit next year, provided you travel by private transport.
Gray license plates for entrepreneurs are disappearing
It was already announced, but now it's actually happening: as of 1 January 2025, the grey license plate scheme for entrepreneurs will disappear! Are you buying a new delivery van after that date? Then you will simply pay the BPM when purchasing a delivery van with a first admission date of 2025 or later. The depreciation period for the BPM also goes from five to no less than 25 years. You can continue to drive BPM-free delivery vans bought before 2025, even if they come from abroad.
BPM (vehicle registration tax) calculation for delivery vans based on CO2 emissions
You are currently paying the BPM based on the net list price for a delivery van. This will radically change from 1 January 2025: from that date, you will pay based on the van's CO2 emissions. You don't have to worry about that with an electric delivery van, but with a 'normal' delivery van, you have lost €66.91 per gram of CO2 emissions.
Increase in motor vehicle tax for delivery vans
As of 2025, motor vehicle tax for delivery vans will increase by 10.1%. As of 2026, this tax will increase by a further 6.96%.
According to the documents, excise duties on fuel will remain low for some time to come. To promote purchasing power, the planned increase will be postponed by six months to 1 July 2023.
Additional tax liability
Yet again, there will be no change in the additional tax liability for petrol, diesel and hybrid-powered cars compared to 2022. As in previous years, the additional tax liability rate remains 22% when registered in 2023. The additional tax liability for fully electric cars will not change either, remaining at 16%. What does change, is the threshold value. This will go from €35,000 to €30,000 in 2023. In other words, the part of the catalogue value above this amount is subject to a 22% addition tax liability. The government will continue to phase out the additional tax liability for fully electric vehicles in the coming years. With EV, also bear in mind, that VAT on electricity goes back to 21% on 1 January next (it was 9%).
Mandatory reporting work-related personal mobility
As a mobility professional, are you already aware of the CO2 reduction Decree on Work-related Passenger Mobility? According to the information now known, employers with 100+ FTE will be obliged from 1 January 2023, to prepare an annual report of business kilometers and commuter traffic of all employees. You can read all about it and how to anticipate in our free e-magazine CO2 reduction of work-related passenger mobility.
Would you like to read the extended documents of the tax plans? These can be found (in Dutch) on the official website of the Dutch government.