Last year, the introduction of the WLTP (Worldwide Harmonized Light Vehicle Test Procedure) for passenger cars caused quite a stir. As of 1 September 2018, each model had to run through a new test procedure to determine its actual CO2 emissions. Steve Somers, Sales Representative LCV at Athlon: "The consequence? The average emissions of passenger cars have risen, which resulted in many models no longer fitting within the car policy of companies. In addition, these higher CO2 emissions had an impact on the benefit in kind and on the vehicle's tax deductibility."
What type of van does WLTP have an impact on?
Since 1 September 2019, all vans up to 12 tons must comply with the WLTP standards, although only light commercial vehicles (Euro standard 6) must be completely tested. For heavy-duty vehicles (European standard VI), only the engine is tested.
What are the tax implications?
At the moment, the fiscal impact in Belgium is limited. “In general, there is no car policy for delivery vans. Light commercial vehicles are regarded as an object of use and are fully tax deductible, regardless of their CO2 emissions. If the van is for professional use only, the driver does not pay benefit in kind either," explains Steve Somers.
Moreover, VAT can be fully recovered, except in the case of private use. The CO2 contribution due to the NSSO only applies if the van is used privately by an employee with an employment contract. This does not apply to the liberal professions, the self-employed and managers: their travel is considered entirely professional.
In Flanders, the traffic tax for vehicles with a maximum authorised mass of up to 2500 kilograms can increase by a maximum of 32.40 euros per year.
What is the impact on the delivery?
As every version of a light commercial vehicle has to comply with the WLTP standards, the laboratories responsible for vehicle approval are overloaded. "This could lead to increased delivery times in the coming months," says Steve Somers.
Are there any transitional measures in place?
Yes, manufacturers can still sell vehicles produced before 1 September 2019 until 1 September 2020. For converted vehicles, this is even possible until 1 March 2020. There are, however, two conditions: the vans must not be registered yet, and the converted vehicles must have been cleared by customs before 31 August 2019.
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