Everything about BPM?
BPM is the tax you pay on a car, van, or motorcycle. You must pay BPM on every car, van, and motorcycle registered in the Netherlands. A car or motorcycle will not receive a license plate until the BPM return has been filed and the tax paid. Only then are you allowed to drive the vehicle on the road.
What is BPM?
BPM stands for “Tax on Passenger Cars and Motorcycles.” The Tax and Customs Administration determines how much BPM you pay for a car based on its CO2 emissions and purchase price. For a delivery van, camper, or motorcycle, the BPM is a percentage of the net list price.
You also pay BPM on certain extras included in the net list price, such as additional options, accessories, and extra charges for special models.
CO₂ emissions are determined using the WLTP method, which is more realistic than previous measurement standards. Learn more about BPM on the Tax and Customs Administration’s website.
BPM and Auto Insurance
When it comes to auto insurance, whether or not the BPM is included in the calculation can affect the premium. A car with a high list price—for example, one with many extra features, such as a hybrid SUV—usually results in a higher comprehensive insurance premium.
The BPM affects the purchase price of a car and, consequently, its list price. That list price is an important factor for insurers when calculating the premium, especially for comprehensive insurance policies. The higher the list price, the higher the premium tends to be.
In addition, BPM plays a role with imported cars. The value—whether it includes or excludes BPM—helps determine the insured value. Insurers sometimes ask whether the declared value includes or excludes BPM, especially in the case of gray-market imports.
Pay BPM for each registered vehicle
In the Netherlands, you must pay BPM on every car, van, or motorcycle registered in the Netherlands. Are you importing a car, van, or motorcycle from abroad? Then you must also pay BPM.
You must pay the BPM even if the vehicle is not registered in the Netherlands but is driven on Dutch roads by someone who lives in the Netherlands.
In these situations, you must pay BPM
In all of the following cases, BPM must be paid:
- You want to register a passenger car, delivery van, or motorcycle with the RDW. For a delivery van, you must pay BPM if it was first put into service on or after July 1, 2005, and you are not a business owner or do not qualify for the business owner exemption.
- You are driving on public roads in a delivery van that has been converted into a passenger car. This refers to a delivery van for which BPM has not yet been paid or for which you have not yet received a refund.
- You are importing a passenger car, a van, or a motorcycle from abroad and want to register it with the RDW.
- You are converting a delivery van that was put into service before July 1, 2005, into a passenger car.
- You no longer meet the eligibility requirements for the entrepreneur program, the disability program, or the taxi or public transportation program.
- You live in the Netherlands and drive a passenger car, van, or motorcycle with a foreign license plate here.
- You live in the Netherlands and will be driving a passenger car, motorcycle, or van here for more than 14 days with a foreign license plate that you borrowed, rented, or leased abroad.
- You modify the engine of a passenger car within three years of its registration in such a way that the CO2 emissions exceed the CO2 emissions on which tax was paid.
Calculate BPM
By calculating the BPM, you can determine how much you’ll have to pay when purchasing a new car. For a passenger car, this calculation is based on the car’s CO2 emissions. For a van, camper, or motorcycle, the BPM is a percentage of the net list price.
To calculate the BPM for a passenger car, you need to know the car's CO2 emissions. The RDW records the CO2 emissions for every type of passenger car with European type approval.
This is also listed in the car's inspection records. You can then calculate the BPM using the table on the Tax Authority's website.
Here's how you can pay BPM
When a new car or motorcycle is purchased, the importer ultimately pays the BPM to the Tax Authority. The dealer charges the customer the amount and then forwards it to the importer.
In other cases, you must fill out the “BPM Return” form. You then send it to one of the 16 BPM filing offices of the Tax and Customs Administration. After it has been reviewed, you will receive a notice stating the amount you owe, the reference number, and the account number.
When are you exempt from paying BPM?
You do not pay BPM in the following cases:
A motor vehicle is 25 years old or older.
A delivery van with CO2 emissions of 0 grams per kilometer.
A delivery van has a first registration date of December 31, 2024, or earlier, and is more than 5 years old.
There is a full age-based deduction. See the flat-rate table on the Tax Authority's website.
You are eligible for an exemption. View all exemptions on the Tax Authority's website.
Difference Between BPM and Motor Vehicle Tax
BPM is a tax you pay once when you register a vehicle in the Netherlands for the first time. The amount depends on the vehicle’s CO2 emissions and price. You pay road tax on a regular basis as long as you own a vehicle, and this amount depends on the vehicle’s weight, fuel type, and province.
The BPM encourages more fuel-efficient driving, while the road tax is intended to cover the costs of road maintenance.
Residual BPM when importing a used car
If you import a used car, you don’t pay the full amount. You only have to pay a portion of the original amount. This portion is also known as the residual BPM. You can find this amount on the vehicle registration certificate or by using the RDW’s online registration check.
The residual BPM is calculated based on several factors, such as the car's age and current mileage. The residual BPM decreases as the car depreciates in value.
For a 5-year-old car with an original BPM of €6,000 and a 60% depreciation rate, you'll still owe €2,400 in residual BPM.
Request a BPM Refund
You can request a refund from BPM if you:
A passenger car used for taxi service or public transportation.
A delivery van used to transport a person with a disability and their wheelchair or other assistive device.
BPM and the Business Owner Exemption
Business owners do not pay BPM when purchasing a delivery van . This exemption is granted automatically if you are registered as a business owner for sales tax purposes. However, the amount is included in the taxable benefit. The exemption applies only if the delivery van is used for business purposes at least 10% of the time.
If you own a delivery van and are not a business owner or do not qualify for the business owner exemption, you must report this and pay the applicable fee within one month of registration. You are, however, permitted to drive it on public roads during that month.
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Frequently Asked Questions About BPM
How is the BPM calculated?
The BPM for passenger cars is calculated based on CO₂ emissions according to the WLTP method. For delivery vans, RVs, and motorcycles, the BPM is calculated as a percentage of the net list price. A depreciation adjustment is often applied to imported vehicles.
When do I have to pay BPM?
You are required to pay BPM when a vehicle is first registered in the Netherlands. This applies to both new vehicles and used vehicles imported from abroad. Even if you are a Dutch citizen driving on Dutch roads with a foreign license plate, you may be required to pay BPM in certain cases. The tax must be paid before the vehicle is issued a Dutch license plate.
Is there a BPM exemption for electric cars?
Yes, electric cars are also subject to BPM. Fully electric cars are only subject to the minimum rate. In 2025, that minimum rate will be €667.
Can I get an exemption from the BPM?
Yes, in certain situations, you can apply for an exemption. This applies, for example, when moving to the Netherlands with your own vehicle, for wheelchair transportation, or if you use a delivery van for business purposes as an entrepreneur. The conditions vary depending on the situation. Read more about the exemptions on the Tax and Customs Administration’s website.
What happens if I file or pay my BPM late?
If you don't pay the BPM on time or file your tax return late, you'll be fined by the Tax Authority. You also can't use the vehicle until it has a license plate. You'll only receive the license plate after payment.
What is the residual BPM during import?
This is the remaining BPM amount after depreciation upon import of a used vehicle.
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