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.

We will keep you informed of further developments. Should you have any questions about the digitisation of the BPM return or other tax developments in the automotive sector, please contact your trusted advisor or a member of our Automotive Team.