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BPM Tax in the Netherlands - What is it and how is it calculated?
Learn about BPM tax in the Netherlands: what it is, how it's calculated, and why it matters for car traders. Discover how eCarsTrade simplifies the process.
As a car trader operating in the Netherlands, you're likely to encounter BPM tax regularly.
BPM tax is a key factor in determining the final price of vehicles in the Dutch market. It can make a substantial difference in your pricing strategy and affect which vehicles are more profitable to import or sell.
Let's dive deeper into what BPM tax is, how it's calculated and how eCarsTrade helps car traders with this tax.
What is BPM?
BPM, or "Belasting van Personenauto's en Motorrijwielen" is a private motor vehicle and motorcycle tax in the Netherlands.
Unlike ongoing costs like road tax, BPM is a one-time payment made when a vehicle is first registered in the Netherlands.
The tax is designed to encourage the use of more eco-friendly vehicles. This means that as a car trader, you might find more favorable BPM rates on low-emission vehicles like electric or hybrid cars.
While BPM is often associated with new vehicles, it also applies to used cars being registered in the Netherlands for the first time..
Vehicles subject to BPM tax
Which vehicles are affected by BPM? Let’s take a look.
- Passenger cars: This is the most common category and includes everything from compact city cars to luxury sedans. The BPM on passenger cars can vary dramatically based on factors like CO2 emissions and fuel type.
- Motorcycles: The calculation method for motorcycles differs from that of cars, often based on the sales price rather than emissions.
- Vans: Commercial vehicles like vans are subject to BPM, but there are some exemptions and different calculation methods depending on their use and configuration.
- Campervans: These vehicles might be eligible for a lower BPM rate compared to passenger vehicles if they meet certain criteria.
- Lorries: Subject to BPM tax only if they are used mainly for passanger transport
How eCarsTrade helps car traders with BPM
At eCarsTrade, we understand the challenges that BPM can pose for car traders who are buying Dutch cars.
That's why we've developed a unique system to simplify the process and reduce costs for our customers.
Here's how we help!
We partner with a specialized importer who handles all the bureaucratic aspects of the BPM payment.
Our importer pays the BPM themselves, ships the cars to Germany, registers them there, and recovers the BPM.
That’s why most of the Dutch used cars we offer come with German documents, which streamlines the process significantly.
This arrangement offers several benefits to our customers:
- Simplified pricing: Our customers only pay the netto price for the vehicle. They don't have to worry about calculating or paying BPM themselves.
- BPM handling: Our importer handles the BPM payment. They register the car in Germany and then reclaim the BPM, eliminating this cost for our customers.
- Cost-effective process: We manage the entire procedure to avoid unnecessary fees, ensuring that our customers get the best possible price.
- Transparent timeline: Due to this process, cars from the Netherlands typically take about 20 working days to arrive to our parking in Belgium. While this might seem longer than direct imports, it's a trade-off that results in significant cost savings and reduced paperwork for our customers.
This system allows car traders to focus on what they do best - buying and selling cars - without getting stuck in complex tax calculations and payments.
By handling the BPM process through our specialized importer, we're able to offer competitive prices and a hassle-free experience to our customers.
Your car will have a slightly longer delivery time to Belgium, but the cost savings and reduced administrative work make it a popular choice among our clients.
Important note! If you see BPM mentioned anywhere on a car listing, this is because the information about the car is synced between the supplier and our platform. As an eCarsTrade client, you will always pay the netto price and BPM is never calculated on top.
When do you have to pay BPM?
eCarsTrade customers do not have to worry about BPM!
However, for traders working with other auction platforms, understanding when BPM is due is crucial for your business operations.
Let's dive deeper into the situations where you'll encounter BPM payments:
- Vehicle importation: Whenever you import a vehicle from abroad to sell in the Dutch market, you'll need to pay BPM. This applies to both new and used vehicles that haven't been registered in the Netherlands before.
- First-time registration: You will need to pay BPM for vehicles that are being registered in the Netherlands with the RDW for the first time.
- Vehicle modifications: If you modify a vehicle in a way that changes its BPM classification, you might need to pay additional BPM.
- Lease vehicle purchases: If you're involved in selling off ex-lease vehicles that were previously BPM exempt due to their lease status, you'll need to pay BPM when these vehicles are sold to private owners.
- Demonstrator vehicles: When you convert a demonstrator vehicle from your showroom into a vehicle for sale, you may need to pay BPM if it wasn't paid initially.
- Restoration of classic cars: If you're in the business of restoring classic cars, be aware that extensive restorations can sometimes lead to a BPM liability, especially if the restoration significantly changes the vehicle's characteristics.
- Kit cars and self-built vehicles: If you assemble vehicles from kits or build custom vehicles, BPM is due when these vehicles are registered for road use.
- Vehicles returning to the Netherlands: If a vehicle that was previously exported from the Netherlands is brought back and re-registered, BPM might be due, depending on the circumstances.
Are there any BPM tax exemptions?
There are several BPM tax exemptions that you should be aware of as a car trader.
If you’re buying a car from eCarsTrade, you don’t need to worry about BPM at all, but let’s see some exemptions that could be interesting to car traders in general:
- Fully electric vehicles are currently exempt from BPM. As a trader, stocking electric vehicles could be a way to offer customers options with lower upfront costs.
- Vehicles designed primarily for goods transport, such as delivery vans with a separate cargo area, may be exempt from BPM.
- Vehicles imported temporarily (usually up to 6 months) may also be exempt from BPM. This could be relevant if you're involved in organizing car shows or providing extended test drives for high-end vehicles.
- If you export a vehicle from the Netherlands within a certain timeframe after import, you may be eligible for a BPM refund.
To qualify for an exemption, a vehicle might need to meet certain technical specifications or be used in a particular way.
How is BPM tax calculated?
The BPM calculation differs based on the type of vehicle.
For passanger cars, it depends on the CO2 emissions. The tax increases progressively with higher emissions. For 2024, the base rate starts at €400 for vehicles emitting 1-82 g/km of CO2, with additional charges for each gram over this threshold.
Diesel vehicles typically face a higher BPM due to a diesel surcharge.
For some vehicle types, like motorcycles, the BPM is based on the vehicle's value rather than emissions.
For used vehicles, a depreciation factor is applied to reduce the BPM. This is calculated based on the vehicle's age and can significantly lower the tax for older vehicles.
Our online car auctions in the Netherlands page that allows traders to bid on used Dutch vehicles
Conclusion
Navigating the complexities of BPM tax is a crucial skill for car traders in the Netherlands.
BPM is an integral part of the Dutch automotive market. Whether you're importing vehicles, advising customers, or planning your inventory, a deep understanding of BPM will serve you well in navigating the Dutch car market successfully.
Remember, working with eCarsTrade eliminates all worries when it comes to BPM. Boost your car inventory with high-quality car auctions from the Netherlands with no BPM hassle!
Importing vehicles from Europe can be complex, but eCarsTrade is here to simplify the process. Learn how to fill out a CMR form for international transport, and discover the step-by-step process for importing a car to Italy, Portugal, Germany, Spain or France.
