New car considerably more expensive due to bpm adjustment

New cars, motorbikes and motorhomes are in danger of becoming a lot more expensive as of next year due to a change in the rules around the purchase tax (bpm). According to interest group BOVAG, a new petrol car can become more expensive by an average of 1000 euros, a diesel 2000 euros and a motor home even 10,000 euros.

The new tax plan includes an adjustment to the bpm rules, intended to make the system simpler and save the Tax and Customs Administration work. This changes the time at which the bpm has to be paid to the tax authorities. But according to BOVAG, this will have an effect, probably unintended, of levying VAT on bpm. “Tax on tax therefore”, according to the interest group.

The organisation asks the tax authorities and politicians to prevent this undesirable effect, so that car buyers do not have to pay tax. “After all, car taxes in the Netherlands are already among the highest in Europe”, says BOVAG.

According to the tax plan, adjustment of the bpm system will take effect on 1 July 2021 or 1 January 2022.