On 23 September 2024, the Dutch State Secretary for Finance published a report drafted by the Netherlands Vehicle Authority (RDW) and the Dutch tax authorities on the digitisation of Private Motor Vehicle and Motorcycle Tax (BPM) declarations. Said authorities are exploring the implementation of a digital portal for the registration of motor vehicles in the vehicle registration register and the declaration and payment of BPM. In their report, they elaborate on their research findings and the expected effects of the policy, anticipating the new system will be operational in the course of 2026. A transition to digitised BPM procedures is particularly relevant for importers in the automotive sector and other entities declaring BPM on vehicle registrations in the Netherlands. In this article, we outline the plans discussed in the report and its implications for the sector.
Digitisation plans
The digitisation effort is planned to be implemented in two
phases. In the first phase, the Private Motor Vehicle and
Motorcycle Tax (BPM) declaration form will be
integrated with the vehicle registration process with the
Netherlands Vehicle Authority (RDW), allowing data
to be submitted only once via a unified digital portal. The second
phase will focus on further digitising the valuation report, which
serves as the basis for BPM calculation depending on vehicle
condition.
The implementation of the digital portal is intended to offer
significant benefits, including reduced administrative burden and
improved communication with the authorities. For instance,
importers will only need to submit data digitally once, simplifying
administrative processing and expediting registration in the
vehicle registration register. Additionally, BPM payments can be
made within a secure environment, mitigating security risks.
Another advantage is the reduction of errors and discrepancies in
the declaration process. Currently, the RDW and the Dutch tax
authorities manually match data at the back end, which can lead to
errors. By automatically linking vehicle registration with the BPM
declaration at the front end, the process will be more accurate,
resulting in fewer errors and additional tax assessments.
Monitoring and fraud prevention
Another purpose of the unified digital portal is the enhancement
of supervision capabilities of the RDW and the Dutch tax
authorities, due to better insight into the technical condition of
vehicles. The portal ensures that importers do not inadvertently
file returns based on incorrect valuation reports, which is crucial
in cases where this is not permitted, such as when an RDW driving
ban is imminent.
Furthermore, the portal aids in combating tax evasion and fraud by
providing consistent information of the vehicle for both the RDW
and the Dutch tax authorities. This should be a response to abuse
risks associated with the use of valuation reports in parallel
imports.
Outlook
While the digitisation of BPM procedures is seen as a long-held desire in the Dutch automotive sector, the envisaged system will not be operational until the second half of 2026 at the earliest. In the meantime, the legislator and authorities will have to iron out the legal and technical difficulties with implementation. Importers and distributors in the automotive sector should monitor developments and assess the impact on their internal procedures as more details become available.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
