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Whether you are a private individual, self-employed person or a company, you will have to pay taxes for your car. These taxes are linked to different criteria, depending on where you live.
1. The registration tax (TMC in French / BIV in Dutch)
The TMC or BIV is the one-off tax you pay with your purchase. In Wallonia and Brussels, it depends on the engine’s power and capacity. For hybrid cars, only the ICE (internal combustion engine) power, not the total power, has to be taken into account. For electric cars, this is the least tax (€61.50). In Flanders, the tax is based on a mathematical formula taking into account power, CO2 emissions (WLTP standard) and engine type. This is €0 for electric cars.
2. Eco-penalty
This one-off tax, to be paid with registration, is reserved for Wallonia. It depends on the CO2. From a certain level (146g CO2/km), you have to pay from €100 to €2500. The CO2 emission standard to be used is that given on the registration certificate.
3. Annual tax
Each year, your region will ask you for the road tax. In Wallonia and Brussels, it is based on fiscal horsepower (engine capacity). Electrics pay the minimum tax. In Flanders, it is also a formula for the TMC. Electricity is exempt from this tax.
To calculate your car taxes, use the FEBIAC Tax Calculator.
4. VAT
In addition to the usual car taxes, don't forget VAT. It is 21% for everything related to the automobile sector (except for exchanges between individuals). Self-employed people and companies can deduct it on the basis of this formula [120% - (0.5% x fuel coefficient x CO2/km)]. However, there are limits; this deduction cannot be less than 40% and cannot be greater than 100%. Your accountant can help you to understand this deduction rate. The CO2 standard to be used is most favourable to the taxpayer if the vehicle has been approved as NEDC and WLTP. Otherwise, you have to use the unique CO2 emission standard given on your vehicle’s certificate of conformity.
