Insuring a Gray License Plate
A car with a gray license plate is a car that qualifies for a tax benefit. You receive this benefit if you are registered as such with the RDW.
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Everything You Need to Know About Gray License Plates
A car with a gray license plate is a car that qualifies for a tax benefit. You receive this benefit if your car is registered as such with the RDW. What requirements must your car meet to qualify for the tax benefit? And can you convert a car to a gray license plate yourself? We’ve laid it all out for you.
A car with a gray license plate offers advantages. You receive a discount on the motor vehicle tax, and you don’t have to paythe BPMwhen purchasing the car. This results in significant tax savings. We can help youinsure a car with a gray license plate. Compared to a passenger car, there are fewer insurers that offer insurance solutions, but it’s worth shopping around.
What is a gray license plate?
The name might lead you to believe that you can recognize cars with thislicense plateby the color of the plate itself, but that is not the case. In most cases, these are delivery vans, small cargo vans, or cars with an open cargo bed that have a license plate starting with the letter “B” or “V.” The term originates from the color of the former registration certificate, Part 1. Due to overly broad regulations, private individuals also used to drive cars with gray license plates in the past, but this practice has been curtailed. Now, these plates are primarily used by business owners. People with disabilities may also own a car with a gray license plate under certain conditions.
What requirements must a car with a gray license plate meet?
The requirements that a vehicle must meet vary depending on the type of vehicle. The requirements for a large delivery van differ from those for, say, a pickup truck or a delivery van with a raised roof. The requirements pertain to:
- The size of the cargo area. For a large delivery van, the cargo area must be at least 2 meters long.
- Side windows. Are they allowed, and what is the maximum number?
- Should there be a mandatory fixed wall or not?
- Additional requirements. For example, no benches may be placed behind the front seats.
See the overview of requirements for delivery vans on theTax Authority’s website.
In addition, there are requirements for the owners (business owners and people with disabilities). The owner must be registered as a business for sales tax purposes and must also have a VAT number. The delivery van must be registered in the name of the business owner or the company. In addition, the vehicle must be used for business purposes for more than 10% of the annual mileage. For people with disabilities, one of the requirements is that they must rely on the vehicle in question for transportation.
Calculate the road tax for a car with a gray license plate
If you're a private individual and you have a car with a gray license plate, you must also pay road tax. You can calculate how much road tax you owe online.
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Third-Party Liability (Mandatory)
- Damage to others
- Theft, joyriding, and missing persons
- Window damage
- Damage caused by fire or natural disasters
- Damage to one's own vehicle caused by a collision
Limited Comprehensive Coverage
- Damage to others
- Theft, joyriding, and missing persons
- Window damage
- Damage caused by fire or natural disasters
- Damage to one's own vehicle caused by a collision
All-Risk (Liability + Comprehensive)
- Damage to others
- Theft, joyriding, and missing persons
- Window damage
- Damage caused by fire or natural disasters
- Damage to one's own vehicle caused by a collision
Frequently Asked Questions About Gray License Plates
Which cars have gray license plates?
There is a wide selection of cars with gray license plates. This is because existing cars can be easily modified to meet the requirements. The most common cars with gray license plates are:
- Delivery vans with or without an open cargo bed
- Delivery vans with a raised roof
- SUVs
- Delivery Vans
How much do you pay in vehicle tax?
Road tax (also known as motor vehicle tax) is lower for cars with a gray license plate. Business owners receive, as it were, a discount on the rate. However, certain conditions must be met to qualify for this discount. These conditions are the same as those for qualifying for a gray license plate. People with disabilities may also be eligible for a road tax discount. For delivery vans that are 30 years old or older, you can receive an exemption from road tax. You can also receive an exemption for electric vehicles with a gray license plate. In that case, the tax rate is zero.
You can calculate the amount of the motor vehicle tax on theTax and Customs Administration’s website. Under the option “Select the type of motor vehicle,” you can choose “Business delivery van.”
What about the BPM for a car with a gray license plate?
The abbreviation BPM stands for Tax on Passenger Cars and Motor Vehicles. When you purchase a motor vehicle, you pay this tax to the Tax Authority. You are also required to pay this tax when importing a car. A business is not required to pay the BPM. In the past, the BPM amount had to be prepaid, but that is no longer required. The refund scheme has been replaced by an exemption—which is certainly good news for business owners. If the vehicle is sold within 5 years, the exemption can be transferred to the next owner.
How much does it cost to switch to a gray license plate?
There are companies that specialize in converting cars with yellow license plates. If you’re looking for a new car, you can go straight for one with a gray license plate. For newer cars with yellow license plates, it may make sense in some cases to have the vehicle converted. By adapting the car to meet the requirements for a gray license plate, you can still take advantage of the tax benefits. Of course, the tax benefit must outweigh the costs of converting the car. We can’t say much about the exact costs involved. The conversion might involve tinting a window, but modifying the cargo bed may also be necessary.
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