2018 Tax plan - Outline of car taxes and environmental taxes measures


Outline of car taxes and environmental taxes measures

2018 Tax Plan - Budget Day (Prinsjesdag)

The following lists the measures proposed in the 2018 Tax Plan in respect of car taxes and environmental taxes measures.

27 September 2017

Outline of car taxes and environmental taxes measures

Dutch version

Back to outline 2018 Tax Plan

Taxation of private cars and motor vehicles

Depreciation based on real value

In certain situations, depreciation rates of vans may be based on their real value. So in such situations, depreciation is no longer mandatorily based on the flat rate depreciation table. This legislative change is first and foremost relevant for imported vans in respect of which the business equity allowance was opted for upon first registration in the Netherlands, and which are sold within five years. The legislative change is further relevant for conversion of vans into private cars, as a result of which private motor vehicle and motorcycle tax is due. 

Publication of list prices of private car and motor vehicles

As of 1 January 2018, list prices of (special) private cars, vans or motor vehicles must be published to help taxpayers file correct private motor vehicle and motorcycle tax returns or use the right notional addition for wage and income tax. On top of that, it will simplify audits by the Tax Administration.

Tax on motor vehicles

Introduction of mass in running order

The tax base for the tax on motor vehicles is the vehicle’s “own mass”. Since this own mass is no longer stated on the registration card since 1 January 2014 while the concept of “mass in running order” is much used within the EU, it has been proposed to use the latter term for Dutch tax on motor vehicles, too. Although this mass is always over 100 kilograms more than a vehicle’s own mass, the change is such that the tax burden does not increase.

Additional tax assessment for suspended motor vehicles

The law as it stands can be unclear about the possibility to impose additional tax on motor vehicles assessments if a suspended motor vehicle is still used on public roads. The law will be clarified on this point since additional tax assessments should be imposed in such instances.

Environmental taxes

Waste tax charged upon removal outside the Netherlands

The plans also provide for reintroduction, in an adapted version, of waste tax upon removal outside the Netherlands. The proposal essentially aims to reconcile the tax base and the taxable amount relating to the taxable fact upon processing outside the Netherlands of waste that arose in the Netherlands, with the tax base and the taxable amount of processing in the Netherlands. The objective is to tax the same manner of processing of all waste arising in the Netherlands alike, irrespective of whether the processing took place abroad. To that end, the rate for dumping or burning waste products from the Netherlands abroad will be the same as the rate for dumping or burning in the Netherlands. Furthermore, the full weight of the waste is essentially taxed in both situations. Note that no tax is charged when waste products that did not arise in the Netherlands are transferred abroad, as would also be the case should these waste products be removed in the Netherlands.

This measure will take effect on a date to be determined by Royal Decree. The reason for this later introduction is that establishing the adjusted levy for the waste sector and the related services requires some preparation.

Temporary increase in energy tax rates

The Energy Agreement for sustainable growth provides for a EUR 200 million annual increase in energy tax proceeds for a 2-year period starting in 2018. To meet this agreement, a proposal has been made to increase the energy tax rates for natural gas and electricity, block-system heating, and the reduced natural gas rates for glasshouse horticulture in 2018 and 2019. With this increase the government aims to equally distribute the tax hike over companies that mainly use natural gas and those primarily use electricity.

Extension of district heating rules

On top of the abovementioned temporary increase in energy tax rates, the 2018 Tax Plan proposes a structural increase in the rate of the first band for natural gas, the block-system heating rate, and the reduced natural gas rates for glasshouse horticulture. This involves a structural increase of 0.0024 eurocents of the current rate and the objective of this increase is to cover of the extension of the town heating rules. These rules provide for application of the degressive rate of energy tax for natural gas that is used in a district heating system that mainly uses residual heat. The degressive rate may produce an energy tax advantage, especially for large systems. The rules for district heating will be extended to include district heating systems that mainly use terrestrial heat, or heat generated using solid or liquid biomass.

Energy tax refund rules

The Dutch Environmental Taxes Act provides for refunds of energy tax upon request with respect to electricity supplied for commercial use, insofar as the actual use exceeds 10,000,000 kWh per 12-month consumption period per connection. A legislative change is now proposed to prevent the refund rules from being affected by a recent modification of an energy covenant.

Related article:

Budget Day 2017 - Webcast

After Budget Day, Deloitte Tax Lawyers discussed the new proposed bills during a live webinar, on Wednesday September 22, 2017. You can see the recorded webinar (in Dutch) here.

Deloitte Update Cafés

Throughout the country, Deloitte organizes Deloitte Update Cafés three times a year: meetings in a pleasant setting with an abundance of network opportunities. This is where Deloitte experts will bring you up to speed about current developments in your field of expertise. Recently discussed topics included: cyber security, financial reporting, amendments in tax legislation, risk & reputation, management reporting, Mid-Market trends and developments, and applied data analytics. Deloitte Update Cafés take little time: most consist of two one-hour presentations. 
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