All about BPM?

What is bpm?

Bpm means "Taxation of Passenger Cars and Motorcycles. The tax authorities determine how much bpm you pay for a car based on its CO2 emissions and purchase price. For a van, camper or motorcycle, the bpm is a percentage of the net list price.

You also pay bpm for some extras that come with the net catalog price, such as extra options, accessories and extra charges for special versions.

CO₂ emissions are determined based on the WLTP method, which is more realistic than previous measurement standards. Read more about bpm on the Tax Office website.

Bpm and car insurance

With car insurance, the inclusion or exclusion of bpm can affect the premium. A car with a high list value, for example due to many extra options such as a hybrid SUV, usually results in a higher all-risk premium.

The bpm affects the purchase price of a car and thus the list value. That value is an important factor for insurers when calculating premiums. Especially with all-risk insurance policies. The higher the list value, the higher often the premium.

In addition, BPM plays a role with import cars. The value including or excluding BPM also determines the insurance value. Insurers sometimes ask whether the declared value includes or excludes BPM. Especially with gray imported vehicles.

Bpm calculation

By calculating the bpm you can calculate how much you have to pay when buying a new car. For a passenger car, you base this calculation on the CO2 emissions of your car. For a van, camper or motorcycle, the bpm is a percentage of the net catalog price.

To calculate the bpm for a passenger car, you need to know the car's CO2 emissions. The RDW records the CO2 emissions of every type of passenger car with a European type approval.

This is also mentioned in the inspection data of the car. Then you can calculate the bpm using table that is on the website of the Tax Administration.

This is how you can pay bpm

For a new car or motorcycle, the importer ends up paying the bpm to the Internal Revenue Service. The dealer charges the amount to the customer and then forwards it to the importer.

In other cases, you fill out the "bpm tax return" form. Then send it to 1 of the 16 bpm declaration points of the Tax Administration. After checking, you will receive a message with the amount you have to pay, the reference and the account number.

Difference between bpm and motor vehicle tax

Bpm is a tax you pay once when you first register a vehicle in the Netherlands. The amount depends on CO2 emissions and the price of the vehicle. Road tax you pay regularly as long as you own a vehicle, and this amount depends on its weight, fuel type and province.

Bpm encourages more fuel-efficient driving, while road tax is meant to pay for road maintenance costs.

Residual BPM when importing used car

When you import a used car, you don't pay the full amount. You only have to pay part of the original amount. This part is also called residual BPM. This amount can be found on the vehicle registration certificate or through 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 drops, just as a new car drops in value.

For a 5-year-old car with original bpm of €6,000 and 60% depreciation, you still pay €2,400 residual bpm.

Bpm and the entrepreneurial scheme

Business owners do not pay bpm when purchasing a van . This exemption is automatically granted if you are an entrepreneur for sales tax purposes. However, the amount does count toward the additional taxable income. The exemption only applies if the van is used at least 10% for business purposes.

For a delivery van, if you are not an entrepreneur or do not comply with the entrepreneurial scheme, you have to declare and pay within one month after registration. You can drive it on public roads during that month.