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Fleet Handbook Netherlands

nl-products
Products
  • Full Operational Lease
  • Operating Lease
  • Fleet Management
  • Sale and Leaseback
  • Motivational Lease
  • Pool Management
  • AlphaElectric
  • AlphaCity
  • AlphaFlex
  • AlphaRent
  • Short Lease
Services

Service, maintenance and repairs, tyre management, insurance, accident management, roadside assistance, replacement vehicle, pre-contract vehicles, daily rentals, national fees and taxes, fine management, fuel management, fleet consultancy and reporting, AlphaGuide app.

Term and mileage for Operating Lease
  • Minimum: 6 months/5.000km per annum
  • Maximum: 60 months/165.000 km (petrol, LPG)
  • Maximum: 60 months/180.000 km (diesel)
nl-registration
Title

In the Netherlands, vehicles must be legally registered either in the name of a private person living in the Netherlands or in the name of a legal entity (company) registered in the Netherlands. Operational lease vehicles are registered in the name of the leasing company.
The BPM (Belasting van Personenauto's en Motorrijwielen) – a luxury tax – must be paid if a vehicle is registered in the Netherlands (please see Taxation section for more details).

Transfer of title

If a title is transferred within the Netherlands, the costs are negligible. For cars imported into the Netherlands, the costs relating to the import (apart from VAT and BPM) currently amount to approximately €1.300,00.

Required documentation

Registering a new car in the Netherlands requires all the car’s registration papers (License plate identity card). In addition, authorisation from Alphabet Netherlands is needed to register the car in Alphabet’s name.
For used cars, a technical inspection is required by the Dutch government traffic office, Rijksdienst voor het Wegverkeer (RDW). The total registration costs are approximately €1.300,00 excluding BPM and VAT (which are paid on the vehicle price). From 1. November 2016 registration costs are part of the consumer price.

Time frame

The vehicle registration process takes approximately three days for vehicles previously or currently registered in the Netherlands.
For vehicles previously registered abroad, the registration process takes approximately two weeks (depending on the technical inspection).

nl-taxation
VAT rate

The current VAT rate is 21%.

Since an operational lease is treated as a service, the lessor must pay VAT on each lease rental including financing costs.

Other vehicle-related taxes and fees
  • Registration tax (BPM)
    Passenger car BPM (luxury tax) is determined based on the vehicle CO2 emission level.

    BPM
    (petrol & diesel)
       2017    2017     2019

    2019 (var.)

    2019 (fix.)

    Rate 0     <61 €2,00 €360,00
    Rate 1 <77 €2,00 62-71 €2,00 €360,00
    Rate 2 77-102 €66,00 72-95 €60,00 €502,00
    Rate 3 103-150 €145,00 96-139 €131,00 €1.942,00
    Rate 5 151-168 €238,00 140-156 €215,00 €7.706,00
    Rate 6 >168 €476,00 >157 €429,00 €11.361,00

    Diesel: additional 88,43 per gram CO2, when CO2 is above 61 gram

      PHEV (Petrol & Diesel) var. fix. 
    Rate 0 <29 €27 €0
    Rate 1 30-49 €113 €810
    Rate 2 50-60 €271 €3.070
    Rate 3 61-999 €359 €6.051

    PHEV Diesel: additional 88,43 per gram CO2, when CO2 is above 61 gram

    Commercial vehicles BPM
    Commercial vehicles are BPM duty-free under the following conditions:
    - GVW < 3.500 kg
    - Cargo space not used for passengers
    - Company declares that the vehicle is used for business purposes only

    Example:
    2017-2020
    Base percentage BPM x (consumer price - VAT) 37,70%
    BPM correction benzine 1.283
    BPM correction diesel 273
    CO2 g/km = 0 No BPM
  •  Import BPM   If registering an imported used car, the BPM due is reduced depending on the age of the vehicle. For example, a car between six and 12 months old will be eligible for a 24% BPM reduction. No BPM is due for public-service passenger cars (e.g. police cars, taxis).
  • Export BPM No VAT tax refund will be granted when a car is exported. If exporting a car, the remaining BPM will be refunded to the seller (e.g. after four years 32.75% of the original BPM) BPM is not refundable if the vehicle is sold within the Netherlands (i.e. if a car is sold, the resale price of the vehicle will include BPM).
  • Road tax

    Electric vehicles and Hydrogen vehicles are excluded for paying road tax. Plug in hybrids and hybrids are getting a discount based on the weight of the vehicle, as road tax depends on the fuel type and the weight of the vehicle.

    For example, a BMW 320iA four-door is taxed at €187.00 per quarter. Petrol vehicles that are also equipped with an LPG installation are taxed more heavily. For example, a BMW 320iA including an LPG installation is taxed at €276.00 per quarter.

    Diesel cars attract the highest road tax. For example, a BMW 320dA four-door is taxed at €370.00 per quarter.

    Example:
     
    BMW 318d sedan G20  
    Net price: €30.000,00
    BPM: €8.898,36
    VAT: €6.300,00
    Total consumer price: €45.198,36
Tax refund and accounting

Companies eligible to reclaim VAT can recover 100% VAT on the lease (or purchase) of cars. If the car is used for private purposes, VAT is recoverable at 2,7% consumer price.
Partially tax-exempt companies can only recover part of the VAT. Companies that deduct VAT on the lease of cars, but use the cars for private purposes, must repay part of the VAT recovered. No tax refund will be granted if a car is scrapped.

Customer lease contract accounting

The new IFRS 16 standard will only affect companies which are publishing under IFRS. Companies may begin to report using this method 1 year in advance. This applies to all leases with initial investment value above 5,000 USD and with a term longer than 12 months.

In future the lessees have to account for a right-of-use asset and a lease liability on their balance sheet. This means that they have to take the financial components of the lease contract on their books (as asset and liability).

Consequently, lessees will have to:

  • depreciate the (right of use) asset
  • reduce the lease liability and
  • account for the interest on the lease liability

The service components are not to be accounted for as an asset and only impact the profit and loss statement.

Lessees who are not affected under IFRS 16 do not capitalise or depreciate a lease contract on their books. Monthly lease payments are treated as operating expenses and accounted for in the profit and loss account. Lessees are obliged to include information regarding long-term obligations (i.e. lease contracts) as additional information in their annual reports.

nl-company-car

There is no company car tax charged for the business use of a company car, but private use is taxable. The taxable benefit for private use depends on the number of private kilometres driven during a given year.
A percentage of the list price of the car is used to determine the total taxable benefit. This percentage differs according to the annual private mileage driven (for private mileage below 500 km, a log must be provided):

  • 0–500 private km = 0%
  • > 500 private km, the following percentages apply:
Fuel (benzin/diesel or electric)
   
CO2 emmission level 2018  2019
0 gram (electric) 4% 4% & 22% above 50.000€*
0 gram (H2O) 4% 4%
> = 1 gram 22% 22%
* 4% till 50.000€, above 50.000€ 22% is applicable    
Calculation example:
 
BMW 318d sedan G20  
Total consumer price: €44.761,50
Private kilometres per annum: 8.000 km
Total taxable base (22% x €41.658,00): €9.847,53

The total company car tax due depends on the driver’s personal tax rate. If an employee has a tax rate of 52%, their annual company car tax contribution would be 52% x €9.899,56 = €5.120,72, paid in 12 equal monthly instalments.
The company deducts this monthly contribution from the employee’s salary on behalf of the tax authority and pays it directly to the authority.

nl-contact

Alphabet Netherlands
A BMW Group Division
Takkebijsters 59
P.O. Box 6890
4802 HW Breda
Netherlands

 

Phone: +31 76 5793200
Email: info-nl@alphabet.com
Internet: www.alphabet.com/nl
Facebook: www.facebook.com/alphabetnederland
Twitter: www.twitter.com/alphabet_nl

 

Latest update: July 2019