After BOVAG previously warned about the possibility that a technical adjustment to the bpm procedure would imply VAT on bpm, the State Secretary of Finance has now stated in response to parliamentary questions from VVD MP Helma Lodders that this is neither the intention nor the intention. will be asked. The Tax Plan contains an amendment to the bpm rules which means that the moment at which the amount of the bpm is determined and the moment at which the bpm must be paid will coincide with the moment of first registration sometime in 2021 or 2022, also known as called part 1a.

UNWANTED

An analysis of the Tax Plan by tax specialists showed that the rules in the VAT and the amended bpm legislation could together ensure that VAT would also have to be paid on the bpm paid. Nowadays, with new cars, the bpm payment is formally made when the customer is registered, and that you pay bpm on behalf of the customer (recurring mail), so that no VAT has to be paid on that bpm. In the new situation there no longer seems to be a recurring item and you would therefore have to pay VAT on the bpm in that logic. So tax on tax. BOVAG determined that this would be an undesirable and probably unintended effect and asked the Ministry of Finance to ensure that no VAT would have to be paid on bpm. Now that insurance has come and it is also in black and white, Bovag reports on them website.

State Secretary Vijlbrief: “[…] I am in discussion with the sector to see whether any clarifications can be made in the bill so that any uncertainty on this point can be removed.”

SUPPORT

Han ten Broeke, general chairman of BOVAG: “New and used cars threatened to become an average of one thousand to two thousand euros more expensive. A middle class car such as the Mazda3 petrol now has at least € 4.418 bpm. The VAT on this would be € 928. And for a popular business diesel like the Peugeot 3008, these are € 8.831 and € 1.855 respectively. And campers sometimes much more. Very undesirable in these times when new sales are declining sharply. The government is playing an increasingly important and negative role in the showroom with car taxes and subsidies. Good that the clarity we requested has now also come. For the industry and for the tax authorities. We are pleased with the support of Helma Lodders, who ensured that the State Secretary provided clarification through parliamentary questions ”.

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