Introduction
Due to the limited supply of good used cars and the ever-rising prices of new vehicles, more and more cars are being imported from abroad. But what does this mean for the BPM (Private Motor Vehicle and Motorcycle Tax)? What should you pay attention to? In addition to BPM, VAT may also be due upon import, but only if the car is younger than 6 months or has driven less than 6,000 kilometers. In all other cases, VAT usually does not apply and will therefore not be discussed further in this article.
Besides the costs for inspection, registration fees, and transport, you (or your company) will also often have to deal with BPM when importing a car from abroad. This article highlights the tricks that are often applied—without your knowledge—by importing parties, to your disadvantage. While the focus here is on having a car imported, the content is also useful for anyone filing their own BPM return.
BPM – Purchase Tax
When importing a car into the Netherlands, BPM is due. This purchase tax is imposed by the government on new vehicles, but also on imported ones. The BPM is based on the type of fuel and the CO2 emissions of the car. The more polluting the car, the higher the BPM. Note: in recent years, BPM has been steadily increased, which is one of the reasons why new cars have become significantly more expensive compared to just five years ago.
A cost-conscious buyer therefore looks across the border—not at new cars, because then the same high BPM applies—but at young used cars, often in the mid and higher segments, where BPM is highest and thus the most savings can be achieved. BPM decreases as the imported vehicle gets older. That sounds attractive, but importers know this too and are aware of additional rules that they generally do not apply in your favor.
Cost breakdown and the role of BPM
You want to purchase a used company car through your BV. On various platforms and through various dealerships, young, well-maintained import cars are offered. The asking price usually consists of the following elements:
· The net foreign asking price
· Costs for RDW inspection and Dutch license plate
· Transport costs
· BPM and VAT
Usually, all components of the price are fixed from the seller’s point of view—including the BPM. However, BPM can be calculated in four different ways, and the importing party is allowed to choose the most favorable method. Whether you actually pay the lowest BPM depends on how alert you are. The four BPM methods are:
1. Discount based on a fixed table (age-related) using the BPM rules of the import year.
2. Discount based on a fixed table (age-related) using the BPM rules of the original year of first registration.
3. Discount based on price lists (koerslijsten) of comparable previously imported vehicles.
4. Discount based on an appraisal of the imported vehicle.
Practical example broken down into the four most common methods:
1. Method 1 – A 2020 car is offered for EUR 75,000 including EUR 20,000 BPM. This BPM is calculated using method 1: the BPM is first calculated as if the car were brand new in the year of import (EUR 53,000 BPM), then discounted using the depreciation table provided by the tax authorities.
2. Method 2 – Strangely enough, the platform does not show what would happen if method 2 were applied. The original BPM in 2020 would have been EUR 31,800 if the car had been sold new in the Netherlands at the time. The same depreciation percentage as in method 1 can then be applied, resulting in a BPM amount of EUR 12,000. The platform could therefore have advertised a price of EUR 63,000 instead. Tip: Consult the tax authority’s depreciation table at: https://bit.ly/3G5MEQG
3. Method 3 – The same car is imported by a trader outside the platform. This trader uses the koerslijsten and arrives at EUR 11,000 BPM. The car is then offered for EUR 75,000 including EUR 11,000 BPM.
4. Method 4 – You purchase the car for EUR 75,000 and sign a sales contract showing EUR 11,000 in BPM. Weeks later, the car is delivered, and the invoice shows EUR 9,900 in BPM. The seller had the car appraised and came to a lower BPM value, saving EUR 1,100. The seller pockets this saving, as you agreed to a total price of EUR 75,000.
Which method is recommended?
1. Method 1 – This method is generally chosen for clean and newer cars. The BPM on clean vehicles has been relatively reduced in recent years, so it's often advantageous to calculate BPM as if the car were new this year and then apply the depreciation.
2. Method 2 – This method is often more favorable for more polluting cars, because the BPM amounts under current rules are much higher than under the original rules. Tip: See this comparison tool: https://bit.ly/4jthhOc
3. Method 3 – This method requires knowledge of the relevant price lists. Most dealers use the koerslijsten from Xray or Autotelex. Tip: Always compare the seller’s BPM calculation with your own, using: https://bit.ly/42MBhFZ
4. Method 4 – This method is where the profits are made—but unfortunately, not always by you. This method is formally only allowed if the imported vehicle has more than normal wear or does not appear in the price lists. That last point is rarely the case, but many cars are still appraised without having excessive wear. Note: most importers appraise their own vehicles. Some will use this to claim an unjustified BPM discount. It’s questionable when a seller advertises a car as ‘like new,’ but then submits a tax report that classifies the same car as damaged. An appraisal must be supported by photographic evidence of the alleged damage.
Conclusion – What should you do to import at the lowest possible BPM?
It is always advisable to calculate the BPM yourself. You can easily do this on the websites mentioned above. If there is a difference between the advertised or quoted BPM and your own calculation, ask for clarification and only proceed with the purchase if the seller cooperates with filing the lower BPM.
Tip: If the seller admits that the BPM is based on an appraisal but you suspect the vehicle has no significant damage, request the appraisal report. Check for listed damage you were unaware of and consider whether it should affect the purchase price.
Extra tip: If a seller refuses to provide insight into the BPM calculation (e.g., by stating it will be determined later—which may indicate they plan to use an appraisal—or by refusing to share the appraisal report), only buy the vehicle for an all-in price, under the condition that any difference between the quoted BPM and the actual BPM owed will be refunded to you.
