What about the road tax for a double cab commercial van?
The road tax for a double cab van is a subject that concerns many entrepreneurs. Do you pay the low rate for vans, or do you still fall into a more expensive rate? The answer depends on how the tax authorities classify your vehicle, and that classification has more snags than you might expect at first glance.
In this article, we answer the most frequently asked questions about motor vehicle tax (MRB) for double-cab commercial vans. Whether you have a want to buy a small van, is considering a double-cab van to purchase or thinking about a electric company car lease, this overview will help you make the right choice and avoid unexpected tax bills.
What is a double cab company bus for tax purposes?
For tax purposes, a company double-cab van is a vehicle that is classified by the tax authorities as a passenger car or a delivery van, depending on the vehicle's specific characteristics. That classification directly determines which MRB rate you pay. A double cabin has two rows of seats and is therefore not automatically considered a van.
The Inland Revenue uses a number of technical criteria to determine whether a vehicle qualifies as a van. In the case of a double cab, the tax authorities look, among other things, at the ratio of the cargo space to the total length of the vehicle. Specifically: the cargo space must be at least as long as the cab, and the cargo space must have a flat loading floor without fixed seats.
What does the Inland Revenue count in its assessment?
The assessment of a double cab revolves around the following measurable characteristics:
- The length of the cargo area relative to the length of the cabin
- The presence of a flat, continuous loading floor
- Lack of fixed seats or comfort features in the cargo area
- The maximum payload and maximum authorised mass
If the vehicle does not meet these requirements, the Inland Revenue classifies it as a passenger car. This has direct consequences for the MRB rate, the additional taxable benefit and any exemptions. It is therefore wise to check how the vehicle is registered in the vehicle registration register before purchasing.
How much road tax do you pay for a double cab?
The road tax rate for a double cab depends on the tax classification of the vehicle. If it is classified as a van, then you will pay the lower MRB rate for vans. If it is classified as a passenger car, then the higher rates based on weight and fuel type that apply to passenger cars will apply.
The difference in costs can be significant. The MRB rate for passenger cars is weight-dependent and increases the heavier the vehicle. A double cab is usually a heavier vehicle, so the road tax rate as a passenger car can increase substantially. For vans, there is a flatter, more favourable rate that increases less sharply with weight.
What is the difference in cost in practice?
Although exact amounts depend on weight, fuel and the province where you live, the difference between the passenger car rate and the van rate for a heavier vehicle is easily several hundred euros per year. For business owners with multiple vehicles in the fleet, this difference increases to a noticeable amount per quarter. Always check the current rates via the Tax Administration's website, as they are updated annually.
Does the low MRB rate for vans also apply to a double cab?
The low MRB rate for vans only applies to a double cab if the vehicle is actually classified as a van by the Inland Revenue. This is not automatically the case. Many double cabs are registered as passenger cars by default, unless they demonstrably meet the technical criteria for a van.
Practice shows that manufacturers sometimes offer variants specifically designed to meet van requirements. Think an extended cargo area or a modified loading floor. If you want to buy a double cab with the low MRB rate in mind, always check the vehicle registration register or ask the seller to confirm the vehicle classification in writing.
How do you check the classification of a vehicle?
You can check the classification of a vehicle in two ways:
- Via the RDW's vehicle registration register: search on the registration number and see the vehicle type registered.
- Through the Tax Office: request a preliminary consultation if you are unsure about the classification of a specific vehicle you are considering buying.
Is the vehicle registered as a passenger car, but you think it meets the van criteria? Then you can apply to the RDW for reclassification. This requires a technical inspection, but can save you considerable money in the long run.
What are the consequences of incorrect vehicle classification?
An incorrect vehicle classification can result in additional tax assessments, fines and a correction to the additional taxable benefit. If the Inland Revenue finds that you have treated a vehicle as a van while it qualifies as a passenger car for tax purposes, it can still impose the underpaid ACT, including tax interest.
Besides road tax, misclassification also affects the addition for private use. If a double cab is classified as a passenger car, the addition rates for passenger cars will apply. This is more expensive for most entrepreneurs than the additional taxable benefit for vans. The combination of an additional MRB charge and a correction to the additional taxable benefit can be financially significant.
How to avoid problems with the tax authorities?
The best way to prevent problems is to be proactive:
- Check the RDW registration before buying or leasing a vehicle.
- If in doubt, ask the seller or leasing company for written confirmation of the classification.
- Consult a tax adviser if you want to use a double cab for business and are unsure about the consequences.
- Keep all documentation on the vehicle, including technical specifications and vehicle registration data.
How do you apply for road tax exemption or discount?
There is an exemption or reduced MRB rate for vans used for business purposes under certain conditions. You apply for this through the Inland Revenue, usually with a form you can submit digitally or in writing. The exemption only applies if the vehicle meets the classification requirements and is used exclusively for business purposes.
For electric vans and electric company cars additional benefits apply. Until a certain date, there is an exemption from MRB for fully electric vehicles. This makes a electric company car lease or purchase extra attractive for entrepreneurs looking to make their fleets more sustainable. Note that the exemption for electric vehicles will be phased out over the next few years, so it pays to act on it quickly.
Which exemptions are relevant for entrepreneurs?
The most relevant exemptions and discounts for business drivers are:
- Electric van exemption: fully electric vehicles are (temporarily) exempt from MRB.
- Reduced rate for vans: lower than the passenger car rate, provided the vehicle is correctly classified.
- Exemption for agricultural and special vehicles: not applicable to standard double cabs, but relevant for specific applications.
Apply for the exemption in time, as the Inland Revenue does not grant it automatically. In case of an incorrect application or a non-compliant vehicle, the exemption will be reversed and an additional charge will follow.
When is a double cab the smartest choice for your business?
A double cab is the smartest choice if you want to transport several employees as well as need substantial cargo space. Think of construction and installation companies, landscapers or service mechanics who go out with a team every day and also carry materials or tools. The combination of passenger space and payload makes this vehicle type functionally versatile.
From a tax point of view, it is wise to do the math beforehand. If the double cab is classified as a van, you will benefit from the lower MRB rate and more favourable addition rules. If it is classified as a passenger car, the cost increases. For entrepreneurs who have a Want to buy small van but still need extra seats, a double cab may be the right middle ground, provided the classification is correct.
What are alternatives if the double cab is tax disadvantageous?
If a double cab is classed as a passenger car in your situation and that is tax disadvantageous, there are alternatives:
- A standard van with a single cabin, combined with a separate passenger car for the team.
- An electric van that meets the van criteria and benefits from the MRB exemption.
- A leasing arrangement where the tax risks are shared with the leasing company.
The choice depends on your daily operations, the number of employees you transport and your company's fiscal situation. Proper consideration beforehand will save you a lot of hassle afterwards.
How we help you choose the right company car
At Van den Hurk Bedrijfswagens, we understand that choosing a double-cab commercial van is not just about the vehicle itself. The tax classification, the MRB rate and the lease construction all play a role. We help you make that choice right, without you having to go through all the rules yourself.
What we can do for you:
- Provide insight into the vehicle classification of each vehicle in our stock, so you know where you stand.
- Advising on the tax implications of buying or leasing, tailored to your business situation.
- A broad Showing range of vans, double cabs and electric utility vehicles, including leasing options.
- Get personalised advice from our specialists in Helmond, with no hidden costs or unclear terms.
Want to know which company car best suits your activities and fiscal situation? Contact us or drop by in Helmond. We are happy to think along with you, from initial enquiry to delivery.
