As an entrepreneur, it pays to make smart choices for your business transport. For example, a grey license plate can be an interesting option if you use a van. But what exactly does it entail? What tax advantages can you get with it? And are there any snags? In this article, we will tell you all about the grey license plate, the rules involved and whether you qualify for it.
What is a grey license plate?
A grey number plate is specially designed for vans used for business purposes. You used to be able to recognise these vehicles by their grey number plates. Nowadays, they simply drive around with yellow number plates. The difference is simple. A specific V or B in the registration code, which still allows them to retain their unique status.
Cars with grey license plates receive a tax advantage from the tax authorities. Entrepreneurs then pay less tax when they register their van on a business basis. For non-entrepreneurs, this benefit is usually not included. Nevertheless, there are some exceptions which we will discuss later.
Advantages
A grey licence plate can give you considerable tax benefits as an entrepreneur with a business van. The main benefits at a glance:
- BPM exemption or reduction on the purchase of a new van
- Lower road tax than for a passenger car
- VAT refund on purchase and maintenance
- No addition for private use (as long as you stay under 500 kilometres per year)
As a business owner, this could save you hundreds to thousands of euros annually.
Cons
A grey license plate has many advantages. But there are also disadvantages and restrictions to consider as an entrepreneur.
- Not every car is eligible. This is because the vehicle must meet the requirements of the tax authorities and the RDW.
- Business use is mandatory. At least 10% of your kilometres driven must be business.
- No rear seats allowed. The cargo area of the car must have a fixed wall and must not contain additional seats.
- Private use has financial implications. Because for more than 500 kilometres of private use per year, an additional taxable benefit applies.
Do you also use the car privately? Then a conclusive trip registration is necessary to avoid problems with the tax authorities.
Rules and conditions for a grey license plate
Not everyone can apply for a grey license plate. The tax authorities and the RDW set strict rules for this. To qualify, you must meet these conditions.
- You are an entrepreneur
- So you are registered with the Chamber of Commerce (CoC)
- And you hold an active VAT number and file VAT returns
- At least 10% of your trips are business-related
- The vehicle is in the name of your company
- Your business car must be recognised as a 'van'
A business car does not have to have been bought as a van. But once it is on a grey registration plate, it is treated as a van, according to the tax authorities. And that means it must meet the following requirements:
- A cargo compartment at least 125 cm long with a fixed partition between cab and cargo compartment
- No additional seats in the rear (except for taxis or medical vehicles)
- The cargo area must not be accessible from the cabin
- Comply with the Inland Revenue's tax furnishing requirements
As an entrepreneur, do you not comply with these rules? Then the Tax Administration may impose an additional tax and you will have to pay higher road tax, among other things.
Why is it called a grey license plate?
The term 'grey number plate' dates back to earlier times. Indeed, until 1999, vans and commercial vehicles actually got grey number plates. That way, they were instantly distinguishable.
Today, these vehicles just drive around with yellow plates. But the name has stuck. You recognise a grey registration plate these days by a specific V or B in the registration code.
Grey license plate for individuals: is it possible?
Many people wonder if they can apply for a grey license plate as an individual. In most cases, this is not possible. This is because the tax benefits are specifically for business owners.
Conclusion
A grey registration plate is the secret weapon for entrepreneurs who use their van for business. You get lower BPM, less road tax and even a nice VAT refund.
But beware: you have to meet the requirements of the tax authorities and the RDW. And if you use the car privately, the additional tax liability could just spoil your party.
