New tax definition of vans
In Belgium commercial vehicles intended for the transport of goods enjoy more favourable tax rules than passenger cars. However, due to certain lacunae in domestic and European legislation, it had been possible for certain passenger cars - subject to minor technical adjustments - to benefit from more favourable rules. To rule out the possibility of these cases of abuse, a special tax definition of the "van" is being introduced, differing from that applied by the Vehicle Registration Department (DIV).
What does the new tax definition imply?
The new definition, which was drawn up in consultation with Febiac, chiefly concerns the way
in which the loading space has to be closed off from the passenger cabin, and the ratio of the
length of the loading space to the wheelbase (distance between the two axles). For the Federal
Department of Finance (FOD), this length should be at least 50% of the wheelbase in the case of
a van (whereas for registration with the DIV it only has to be 30%).
Pick-up type vehicles will still be treated as vans for tax purposes.
What consequences does the new definition have?
A large number of passenger vehicles of the people carrier, off-road vehicle or luxury four-wheel-drive variety will no longer be considered as vans, and will therefore be taxed as passenger cars.
This means that the following are adapted:
- the road tax
- the excise-compensation tax, the supplementary road tax and the tax on bringing the vehicle onto the road
- the deductibility of car costs (75% for passenger cars)
- the investment deduction (passenger vehicles are excluded)
- the depreciation of additional costs
- the VAT (application of the 50% rule).
This new rule will also be applicable to vans that are already registered and fail to meet the new conditions.
Supervision of the technical characteristics specific to the tax definition will be carried out by the State Motor Vehicle Inspection.
Federal Department of Finance (FOD)
For more information: 02 33 66 999 - www.minfin.fgov.be