The Tax Plan contains an amendment to the rules regarding BPM, the luxury tax on cars, motorcycles and campers. The moment at which the amount of the BPM is determined and the moment at which the BPM must be paid by the importer / dealer to the tax authorities, coincide from next year with the moment of first registration of the new car, also known as part 1a. This intervention should save the tax authorities a lot of work. Why that is the case is a fairly technical story. What matters is that the adjustment is likely to have an unintentional, but in any case very annoying effect: a new petrol car can be on average about 1.000 euros more expensive and a diesel even 2.000 euros. There is a threat of VAT on BPM. So tax on tax.
At this time, the amount of the BPM is (provisionally) determined at license plate registration (1a), and the BPM is definitively determined and paid at the time of registration (1b) of the car. Because the BPM payment to the Tax Authorities is currently very close to delivery of the car to the customer, the Tax Authorities reasons that as a car company you pay the BPM on behalf of the customer (recurring mail), so that no VAT has to be paid on that BPM . In the new situation there is no longer a recurring item and you would therefore also have to pay VAT on the BPM. So tax on tax. And that amounts to between 1.000 euros and 2.000 on top of the price of a new car. These amounts are much higher for campers. There is just 50 thousand euros BPM on it, which would lead to 10 thousand euros extra in VAT.
Incidentally, this problem does not only affect new vehicles. Used vehicles that do not fall under the so-called margin scheme, whether they are imported or traded on the Dutch market, will also face this problem. BOVAG The Tax Authorities, Finance and politics will point out this undesirable effect and ask - left or right - to prevent car buyers from having to pay tax on tax. After all, car taxes in the Netherlands are already among the highest in Europe. According to the Tax Plan, adjustment of the BPM moment will take effect on 1 July 2021 or 1 January 2022.
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