Tax and cars
Taxation of cars and motorcycles
In the Netherlands we have two types of tax for the car. These taxes may also apply when you as a foreign employer make a car available to your Dutch employee.
Registration tax and motor vehicle tax
There is a registration tax for cars (Taxation Cars and Motorcycles, private motor vehicle and motorcycle tax (BPM)) which has to be paid as soon as a resident of the Netherlands drives on public roads with a car in the Netherlands. We also have a tax regarding the use of the road (motor vehicle tax (MRB)). You pay the motor vehicle tax periodically, as long as the car is used on the public road in the Netherlands.
What does this mean in practice for you?
When you as an employer make a car available to your Dutch employee, you have to pay private motor vehicle and motorcycle tax (BPM) before you start to use the car, unless an exemption licence has been applied for and obtained. The payable BPM may easily be a few thousand euros. If you did not pay the BPM, your employee can be forced to pay the BPM and a fine as well before travelling on from a customs check.
In addition, the car must be reported for the motor vehicle tax (MRB). You pay this tax every month or quarter.
What can you do to reduce the risk?
We can help you to assess whether BPM and MRB has to be paid, or that an exemption may apply. Moreover, we can take care of your BPM declaration. We can also help you to report your car for the motor vehicle tax.
For more information please contact the specialists of Accon International.