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Dutch resident employee driving a foreign license plated car, is that possible?


That is in principle not possible, but there are situations and circumstances that make it possible. We would like to inform you as follows.

If you are a Dutch tax resident and you drive a car, the car needs to have Dutch license plates on it. Dutch license plates stand for the BPM tax being paid. BPM is tax on cars. Even if a Dutch tax resident drives a car that is not his own car, the car needs to have Dutch license plates. The penalty is an immediate charge of BPM plus penalty. The BPM is already a huge amount, the penalty is a percentage of the BPM due and can go up to 100%.

But what happens if a company car has been issued to you by your foreign employer hence with foreign license plates? One solutions with two options.

The one solution is requesting a permit with the Dutch tax office to drive this car in the Netherlands. Within this permit there are two possibilities.

One where is the employee the managing director or important enough within the company to determine whether a Dutch license plated car or foreign license plated car is issued to the employee. If that is the case, the permit is limited to the quickest route to the country of your employer. If the car is driven outside the route, the same penalty is due as if there was not permit.

Second possibility is the circumstance where the employee has no influence to what license plate the car has. Then the permit is granted for the full Netherlands.

Please be aware of the fact that the permit only applies to this employee. So if anybody else is driving the car in the Netherlands, or if the employee cannot show the permit on request, the BPM plus penalty is due again.

Strong rules, but then again the BPM tax on cars is important to the Dutch Government.



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