What is a grey license plate car
A grey number plate is not a physical number plate, but a tax designation for a van. This car must be equipped to transport goods, with a fixed loading floor and no rear seats. The car is in your or your company's name and is used for business purposes. You have to drive at least 10% of the kilometres on business to meet the Tax Office's requirements.
This scheme is designed to support entrepreneurs in their mobility costs. Vans that meet the equipment requirements fall under a more favourable tax regime. As a result, you save on fixed costs. Note: in case of incorrect or mixed use, these benefits will expire.
The colour of the registration number
Despite the name, the number plate is simply yellow, just like other vehicles. The term “grey registration plate” refers to the grey registration certificate of the past. So today it is an administrative term and not a visual one. So you cannot tell immediately from the outside of the vehicle whether it falls under grey registration for tax purposes.
Conditions of the van
To qualify for grey registration, the vehicle must meet a number of technical and administrative requirements.
Think about:
- A flat loading floor,
- A fixed separation between cabin and cargo area,
- No extra seats behind the cabin,
- The car must be in the name of an entrepreneur liable for VAT,
- And you must use the car for more than 10% of the trips on business.
It is important that the van's interior continues to meet these requirements throughout the period of use.
If you have additional windows or seats fitted, for example, this could affect the vehicle's tax status. In that case, the tax authorities may revoke the grey license plate and impose additional taxes.
Road tax from 2025 for electric vans
Until the end of 2024, you did not have to pay road tax for an electric van. Since 2025, that has changed. You will still get 75% discount, known as the quarter rate. This discount applies to fully electric and hydrogen vehicles. From 2026, this benefit is likely to disappear altogether, so take this into account when choosing a new vehicle.
Advantages
Using a grey license plate van for business purposes has clear financial advantages. These benefits can make a big difference to your monthly costs and make it attractive to use the car for business purposes. Here are the main points.
Low road tax
If your van qualifies as a grey registration for tax purposes, you will benefit from a lower motor vehicle tax rate. This benefit applies as long as the vehicle meets the equipment requirements and is used for business purposes. Especially for diesel cars, the difference with the normal rate for passenger cars can be considerable.
No BPM
Until 1 January 2025, as an entrepreneur, you paid no BPM when you bought a new van. Since 2025, this has changed: you now pay BPM based on CO₂ emissions, unless the vehicle is completely emission-free. This means you will only benefit if you switch to electric.
Deductible VAT
For business use, you can reclaim VAT on the purchase, maintenance and fuel of the van. If you also drive the car privately, you must make a correction at the end of the year based on the private mileage. Without a correction, you risk retrospective taxation in the event of an audit.
Cons
Although the grey licence plate offers advantages, there are also disadvantages you need to consider as an entrepreneur. In particular, additional costs may arise when using the van privately. Below you can read what the main downsides are.
Addition
Do you also use your company van privately? Then you get addition. For more than 500 km of private use per year, the tax authorities add a percentage of the catalogue value to your income. This increases your taxable profit. If you drive less than 500 km privately, you can avoid this, provided you can prove it with a trip registration.
Insuring a grey license plate car
Every van should have at least third-party insurance. Because you use it for business, you usually need business car insurance. This provides cover for use while working, transporting tools or materials. When taking out the policy, make sure you clearly state that it is for business use, otherwise the cover may lapse in case of damage.
Business insurance may be slightly more expensive, but it also covers risks you face as a business owner. Think of damage during loading and unloading or damage caused by employees using the car. It is also possible to take out additional cover, such as legal expenses insurance or goods insurance.
Private grey license plate car
Private individuals may own a grey license plate van, but do not enjoy the tax benefits that entrepreneurs do. You pay the normal rate for motor vehicle tax and possibly bpm. For second-hand vans that were previously exempt from bpm, you often still have to pay bpm on the current value when transferring to private use. Many private individuals choose a grey license plate because of the space, but financially it is usually less advantageous. The fixed costs are often higher than for a private car, especially for diesel models, and insurers usually charge a higher rate for private use of commercial vehicles.
Frequently Asked Questions
What are the rules for a grey license plate?
You must be an entrepreneur, the car must meet the equipment requirements and be used at least 10% for business purposes. The car must be in your or your company's name.
What is the difference between a grey and yellow license plate?
A grey number plate is more fiscally advantageous and intended for vans owned by entrepreneurs. The number plate is simply yellow, just like a private vehicle.
Is it possible not to pay an additional tax rate for a grey registration?
Yes, if you drive less than 500 km privately and can prove this with a trip registration form or a declaration with the Tax Office. Commuting does not count as private.
