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Fleet Handbook Belgium

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Products
  • Full Operational Lease
  • Fleet Management
  • Sale and Leaseback
  • Motivational Lease
  • Light Commcercial Vehicles (LCV)
  • Company Bike
  • AlphaFlex
  • AlphaElectric
  • AlphaCity
  • AlphaRent
  • Long-Term Rental
  • Pool Management
  • My Personal Lease (B2E)
Services

Funding, service, maintenance and repairs, tyre management (incl. winter tyres), insurance, accident management, roadside assistance, relief vehicles, pre-runners, daily rentals, tax management, fine management, fuel management, fleet and mobility consultancy tools, management information, reporting, outsourcing including Drivers Desk, end-of-contract management and remarketing solutions, add-on mobility, retro-fitting service, mobility card, driver training, apps, etc.

Term and mileage for Operating Lease
Personal Cars
  • Minimum: 24 months/no minimum mileage
  • Maximum: 60 months/180.000 km (diesel); 125.000 km (petrol)
LCV
  • Minimum: 24 months/no minimum mileage
  • Maximum: 60 months/200.000km (diesel); 160.000km (petrol)
Company Bike
  • Minimum: 24 months/no minimum mileage
  • Maximum: 60 months/no mileage restrictions
AlphaRent
  • Minimum: 1 day
  • Maximum: 24 months/no mileage restrictions
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Title

The leasing company is the owner of the leased car and is responsible for its registration. Vehicles are thus registered in the name of Alphabet Belgium Long Term Rental NV. In principle, all Belgian residents who wish to drive a vehicle on Belgian roads must register their vehicles in Belgium, even if the vehicle has already been registered abroad (Royal Decree 20 July 2001). The main exception regards people who work for a foreign employer who provides them with a vehicle that is registered abroad in the name of that employer.
Belgian residents are all natural persons or companies with a permanent address in Belgium.

Transfer of title

Cars that are re-registered in Belgium are charged a registration tax, even if the previous or initial owner already paid this tax (see Taxation section for more information).
A technical inspection is required prior to re-registration. Registration tax is due in full in the first year, with up to 10% reduction for each subsequent year. Cars that are currently registered abroad have to be re-registered in Belgium, if the owner wishes to use the car primarily in Belgium. This means the owner would also have to pay registration tax in Belgium. A large proportion of this tax is not recoverable.

Required documentation

To register a lease vehicle, Alphabet requires a ‘demand form for the registration of a vehicle’ (supplied by the car dealer) and the vehicle invoice.

Time frame

The vehicle registration process takes approximately ten working days, although online registration is completed within 24 hours.

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VAT rate

The current VAT rate amounts to 21%.
A lease agreement (financial or operational) is subject to VAT. Therefore, financing costs must be included in the taxable portion of the lease for VAT purposes, excluding insurance (civil liability).

Other vehicle-related taxes and fees
  • Registration tax (taxe de mise en circulation/ Belasting op Inverkeerstelling)
    Registration tax is subject to regional authority. Since March 2012, registration tax has been based on: CO2emissions, environmental classification, date of first registration and fuel type. This ‘green’ change of legislation is, however, not applicable to leasing companies, as for those companies registration tax is only based on cylinder capacity and engine output. For example, registration tax for a BMW 318d (11 FHP and 136 HP) is currently €495,00 for a leasing company instead of €699,99 for a non leasing company.
  • Road tax
    Road tax (also known as annual circulation tax) is based on fiscal horsepower. The minimum cost is €81,97. For example, road tax for a BMW 318d is currently €429,26.
  • Additional circulation tax
    An additional circulation tax is required for liquefied petroleum gas (LPG) cars only. This additional tax ranges from €89,16 to €208,20.
Example
(prices valid on November 1, 2017)
 
BMW 318d Sedan, 136 HP                                      
Net list price: €28.595,04
VAT: €6.004,96
Registration tax: €495,00
Delivery costs (flat charge): €150,00
Road tax: €429,26
CO2 emissions: 118g

 

Tax refund and accounting

Lessees who are eligible to reclaim VAT can recover up to a maximum of 50% of the monthly lease rental on passenger cars, in proportion to the professional use, and 100% on commercial vehicles. If the company is involved in the sale or supply of cars, 100% of the VAT is recoverable (e.g. Rental business).

Car-related expenses (e.g. service costs, insurance, car fluids, etc.) when using the vehicle for business purposes is deductible based on the CO2 emissions of the car, allowing companies to deduct up to 120% in case of CO2 efficient cars.

Example:
     
Deduction CO2 emissions
diesel
CO2 emissions
petrol
CO2 emissions
electric
120%     0g
100% 0-60g 0-60g  
90% 61-105g 61-105g  
80% 106-115g 106-125g  
75% 116-145g 126-155g  
70% 146-170g 156-180g  
60% 171-195g 181-205g  
50% >195g >250g  

Financing costs remain 100% deductible, fuel has been 75% deductible since 1 October 2011. Lessees do not capitalise or depreciate an operational lease contract on their books. Monthly lease payments are treated as operating expenses and accounted for in the profit and loss account.

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A ‘taxable benefit’ – to be paid for by the employee – applies when a company car is also used for private purposes. A non-deductible expense for company cars is to be paid by employers (40% of the taxable benefit if the company pays the fuel costs for personal use of the car. 17% in other cases).
The taxable benefit is calculated as follows: [the list price x correction coefficient x 6/7] x carbon percentage rate. The minimum contribution is €1.310,00.

List price: price of the vehicle in new condition upon sale to a private citizen, including the options and the amount in VAT actually paid, excluding all discounts.

Correction coefficient: depends on time span that has elapsed since the vehicle was first registered.

Example:
 
Time span Percentage rate of the list price
From 0 to 12 months 100%
From 13 to 24 months 94%
From 25 to 36 months 88%
From 37 to 48 months 82%
From 49 to 60 months 76%
As from 61 months 70%

Carbon percentage rate: 5,5% standard for 86 g/km (diesel) or 105 g/km (petrol). For each gram of carbon in plus or minus, the rate is raised or reduced by 0,1% (with a minimum of 4% and a maximum of 18%).

TB calculation example:
 
BMW 318d;
turns 25 months on 1 June 2018
 
1 January-30 May:
(34.600,00 x 94%) x 6/7 x 8,7% = 2.425,36 x 152/365
€1.010,00
1 June - 31 December:
(34.600,00 x 88% x 6/7 x 8,7% = 2.270,55 x 214/365
€1.331,27
Total benefit in kind for 2017 €2.341,27

The employee pays taxes on this benefit in kind.

be-contact

Alphabet Belgium Long Term Rental NV
Ingberthoeveweg 6
2630 Aartselaar (Antwerp)
Belgium

 

Phone: +32 3 4501818
Fax: +32 3 4574131
Email: info@alphabet.be
Internet: www.alphabet.be

 

Latest update: September 2018