5 end-of-year tips for car owners

06 december 2021

The end of 2021 is already in sight. The year has flown by, but fortunately there is still time to arrange a number of things if you own a car. You can benefit from many tax benefits. We'll talk to you below.

1. Take the changing additional tax rate into account

When you drive a business car you often have to deal with additional tax . The rate of this addition lasts for five years. If your car received a license plate in 2016, it means that the additional tax will change in 2022. The additional tax amount will be 25 percent in 2022. It will also change for electric drivers. This rate is currently 12 percent, but will be 16 percent in 2022. This applies to a catalog value of up to 40,000 euros. If the value of the electric car is above this, it is 22 percent.

2. Switch to electric

It is expected that in a few years we will have to exchange fuel cars for electric ones. There are already a number of car brands that only want to produce electric cars by 2025. So it is worth making the switch to the plug-in car now. Moreover, the additional tax for an electric car is only increasing. Actually, you are already too late, because in 2021 the additional tax was only 12 percent, while the additional tax in 2022 will be 16 percent. This amount will probably only increase over the years.

3. Apply for a subsidy for electric driving

As a private individual, you can apply for a subsidy when purchasing an electric car. This subsidy does depend on the car: 2000 euros for a used car and 3350 euros for a new electric car. However, not every motorist is entitled to this subsidy. There are a number of conditions attached. The list price of the car must be between 12,000 and 45,000 euros and the range must be at least 120 kilometers. In addition, this subsidy does not apply to business drivers. It is also important to know that the pot of this subsidy may run out. So be on time and apply for this subsidy before January 3, 2022. This is possible when the purchase or lease contract has been concluded with a recognized company.

4. Private use on the VAT return

If you drive a company car but also use it for private trips, it is important to report this in the very last VAT return of this year. You have to pay VAT on the kilometers you have driven in your private time. If you have not kept track of these kilometers, you can use a flat-rate correction. This is 2.7 percent of the list price of the car. A percentage of 1.5 percent applies to company cars that have been used for five years or more.

5. Apply for MIA and Vamil

If you, as an entrepreneur, drive an environmentally friendly car, you are eligible for the environmental investment deduction (MIA) and the Random depreciation of environmental investments (Vamil). This can give you a lot of tax benefits: it can be up to 12 percent. The percentages differ per situation and in 2022 the MIA will be increased to 27, 36 and 45 percent. To be eligible for the MIA and Vamil, you must register with rvo.nl. This must be done within three months after you have entered into the investment obligation.