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8 Jun 18

Clarity at last: NEDC 2.0 applies until 2020 in Belgium

The CO2 ratings OEMs currently published by OEMs for newly type approved vehicles are derived from the WLTP values. These derived ratings are called “NEDC correlated” or “NEDC 2.0” and are intended as a temporary taxation basis as to not disadvantage new cars vis-à-vis older cars with a more advantageous “NEDC 1.0”-based CO2 rating.

The EU urged its member states to use this temporary measure until January 2019. However, reality shows that most member states are not ready to adapt their fiscal system to WLTP values by then. Not adapting the fiscal rules would inevitably mean increased taxes – at least in countries where vehicle taxation is based on CO2 emissions.

Such is the case in Belgium. Much to the reassurance of consumers, fleet owners, leasing companies, NSCs and dealers, the Belgian finance ministers have officially confirmed that NEDC 2.0 will remain the taxation basis for all fiscal elements that fall under federal legislation, i.e. Benefit in Kind (BIK), fiscal deductibility of vehicle related costs and the employers’ solidarity contribution. Road tax, however, is decided upon by the regions and could already switch to WLTP as soon as January 1st 2020. At least in Flanders – Wallonia and Brussels have not decided yet.

If you want to know more about the taxation and legislation of company cars in Europe, check out the 2018 Fleet Europe Taxation Guide

 

Authored by: Dieter Quartier