Depreciation on the basis of a valuation report

The valuation report you use with the BPM return must meet the conditions in appendix 1 of the Uitvoeringsregeling belasting van personenauto's en motorrijwielen 1992 (Implementation Regulation on Taxation of Passenger Cars and Motorcycles 1992, only available in Dutch).

If the valuation report does not meet the conditions, you are not allowed to use the report to determine the BPM reduction.

In short the conditions are:

• You can only use an appraisal report for:
  • Motor vehicles with more than normal wear and tear
    Normal wear and tear includes wear and minor damage resulting from the use of a motor vehicle. The wear and minor damage are typical for the age and mileage of the motor vehicle.
  • Motor vehicles that are not listed in a price list (koerslijst)
• The valuation report must be from an independent, recognised valuer (taxateur). This valuer must not be part of a company dealing in used motor vehicles. The valuer must not have any direct or indirect connections to such a company. The valuer must not prepare BPM returns for their own clients or third parties. The valuer must not act as a representative in objection and appeal procedures.

• You must keep the motor vehicle available for inspection in the condition you reported at the RDW inspection until 6 working days after the payment of the BPM.
• The inspector may summon you to show your motor vehicle at 1 of the locations of Domeinen Roerende Zaken (DRZ) during the period after the declaration is received.
  DRZ (Domains Movable Property) is a directorate of the Ministry of Finance and is charged with 2 statutory tasks. The first task is to process surplus goods of the central government. The second task is to process goods that have been criminally seized by or on behalf of the central government.
• If you have received such a call from the inspector, the RDW will not issue a vehicle registration number until the motor vehicle is shown.
• Does the valuation report contain data from a price list (koerslijst)? Then you may only use 1 price list. And you may not reduce the value if the reduction is not in that price list, such as a car with a rental history.
• The value on purchase of the motor vehicle by a dealer in the Netherlands is described clearly and in detail in the valuation report.
• The valuation report contains a statement by the valuer that they have truthfully determined the value after a thorough physical survey of the motor vehicle.
• The valuation report includes the date, starting time and end time of the examination by the valuer and the name, address and residence of the valuer.
• Depreciation with a valuation report is only possible for motor vehicles that are allowed to be driven according to road traffic laws and meet all the requirements of those laws. There must therefore be no prohibition or intended prohibition on driving on public roads.
• The depreciation due to damage may be 31% of the repair cost. Do you want to use a higher percentage? You may:
  • if the appraised value does not fall below the purchase value of the motor vehicle including the Dutch VAT (turnover tax) and BPM
  • or if the valuer sufficiently substantiates the higher rate
    This justification must be more than one that relates only to the car segment, age or mileage of the motor vehicle. We may ask you for supporting documents.
• Do you want to depreciate with a valuation report? Then report this when you file your tax return. You cannot change this later.

How do I calculate the depreciation?

Compare the details of your car, van, or motorbike with the details of similar motor vehicles previously registered in the Netherlands. In doing so, look at the actual value of the motor vehicle at the time it was registered in the Netherlands. You compare this value with the historical sales value (consumer price) in the Netherlands of the same motor vehicle at the time your motor vehicle was first used abroad. Then calculate an actual depreciation percentage. Calculate the amount you have to declare with the depreciation percentage and the calculated gross BPM amount.

Calculation example 1

In this calculation example, we assume notional amounts.
The historical sales value (consumer price) is € 12,760. The purchase value in the Netherlands by a dealer at the time of depreciation is € 6,000, according to the valuation report. The depreciation is € 12,760 - € 6,000 = € 6,760. Expressed as a percentage of the historical sales value applicable when the car or motorbike was first put into service, this is 52.98%. By purchase value here, we also mean the purchase value in the Netherlands by a dealer. You reduce the calculated BPM by this percentage.

Calculation example 2

In this calculation example, we assume notional amounts.

Car data

• Type of car: passenger car.
• Fuel: diesel.
• Date of first entry into service: 08-10-2020.
• CO2 emissions: 140 g/km.
• Net catalogue price at first use: € 21,116.
• Consumer price (new price in the Netherlands on date of first use): € 31,346.
• Purchase value in the Netherlands by a dealer according to price list on date of RDW approval: € 13,300.
• Date of RDW approval: 08-03-2022.

Calculation of BPM amount in case of depreciation with appraisal report

• The depreciation is: consumer price - purchase value according to price list = € 31,346 - € 13,300 = € 18,046.
• The depreciation percentage: depreciation / (consumer price / 100) = € 18,046 / (€ 31,346 / 100) = 57.58%.
• BPM payable on CO2 emissions: ((CO2 emissions - 116 gr/km) x € 124) + € 1,938 = ((140 - 116) x € 124) + € 1,938 = € 4,914.
• BPM based on CO2 emissions (rate October 2020): € 4,914.
• Diesel surcharge (rate October 2020): 140 - 80 x € 78,82 = € 4.729.
• Gross BPM (rate October 2020): € 9,643.
• BPM payable: ((100 - depreciation rate) / 100) x gross BPM = ((100 - 57.58) / 100) x € 9,643 = € 4,090.