From 1 January 2027, Dutch employers can face a separate payroll levy for petrol, diesel and hybrid passenger cars. The levy applies when staff can use the car privately or for commuting. It is 12% of catalogue value for cars up to 25 years old. Older cars use market value.
Why this matters
The employer pays the levy and cannot charge it to the employee. It sits alongside the employee’s taxable benefit, or bijtelling. The 500-private-kilometre limit does not remove the levy because commuting counts as private use. Transition treatment may apply until 1 January 2031. It depends on when the same employer first provided the car. Keep that date in the fleet file, car contract and payroll record.
Example
An employee receives a new hybrid car on 5 January 2027 and uses it to commute. The employer levy can apply, even if other private trips stay below 500 kilometres. During a repair, a garage supplies a petrol replacement car. The lease file lists the regular car. The garage invoice shows the replacement plate and dates. Payroll still needs the user, reason and period to support a proposed replacement-car exception.
XTROVERSO tips
- List every available passenger car. Include owned, leased, rented, shared and replacement cars. Record the registration plate, fuel type, user and employing entity in the fleet file.
- Record the first provision date. Check when the current employer first made each car available. Keep the contract, handover record or payroll file that proves the date.
- Separate electric cars from hybrids. A hybrid is not fully emission-free for this levy. Mark petrol, diesel and hybrid cars clearly in the fleet record.
- Send supplier details to payroll. Ask garages, leasing companies and rental firms for registration plates, dates and the reason for replacement transport. Agree who sends those details to payroll.
- Compare the full employer cost. Review lease payments, fuel or energy, maintenance, payroll levy and contract flexibility together. Check employee bijtelling, the employer levy and VAT separately.
- Watch the proposed exceptions. The core levy has been enacted. Rules for temporary and replacement cars remain tied to the 2027 tax package. Confirm the final rules before using an exception.
Need a clear view of your car contracts, vehicle records and payroll process?
The data, sourcing, and analysis behind this article were conducted by Linda Pavan. AI was not used to identify sources, build the factual basis, or produce the analytical judgment contained here. AI was used only as a drafting aid. The final English text was personally reviewed, edited, and approved by Linda Pavan before publication.
References
- Ondernemersplein — Extra belasting op uitstotende leaseauto’s
- Rijksoverheid — Wetsvoorstel Overige fiscale maatregelen 2027
- Belastingdienst and Rijksoverheid — Uitvoeringstoetsen Overige fiscale maatregelen 2027
- Salaris Vanmorgen — Vragen over de pseudo-eindheffing fossiele auto
- Rijksoverheid — Belastingen bij een auto van de zaak
