Is a car dealer required to keep records of the cars he has driven?
Employees of car dealerships often drive demo cars. As a result, they switch cars regularly. In practice, employees of independent car companies with a company car will also switch cars regularly. To the amount of the addition A practical arrangement has been made to be able to calculate this.
This arrangement looks like this:
- De addition is determined per day;
- If the employee takes a car at the end of the working day, the catalogue price of that car applies for that day;
- If the employee does not work on a particular day (leave/sickness/weekend) and has brought a car with him, the catalogue price of the car that was last brought and has not yet been returned to the company applies;
- If the employee does not bring a car, the catalogue price of the car on which the additional tax has been calculated most often in the past two months applies.
Monitoring the accuracy and completeness of the administration
According to the Tax and Customs Administration's "Supervision Guidelines," employers are required to monitor the accuracy and completeness of their records. This means employers must check at least once per pay period (usually once a month) which cars are absent, explain their absence, and verify whether any employees have not used their cars that day. External information, such as traffic fines or damage reports, must be verified against the additional tax liability records.
To limit the administrative burden, BOVAG Autodealers has entered into an agreement with the tax authorities regarding the method of administering and monitoring the additional tax liability of employees of car companies.
Additional charge on fixed car
Within the automotive industry, the additional tax liability can also be based on a fixed-term car, provided the employee doesn't change cars too often. Employers and employees must draw up a written agreement for this purpose. The additional tax liability is then calculated based on the fixed-term car specified in the agreement. This is recorded once in the records and subsequently whenever the fixed-term car changes.
On days when the employee cannot use the regular car and has a replacement car, the basis for the additional assessment can still be based on the regular car.
However, four conditions must be met:
- The employee cannot use the regular car for business reasons. For example, the regular car is being serviced or has been taken for a test drive by a customer.
- The employee uses a replacement car for a maximum of 15 days per calendar year;
- The employee uses a replacement car for a maximum of 5 consecutive days;
- The details of the replacement car are recorded and stored in the payroll administration.
If these conditions are not met, the additional payment must be calculated on a time-proportional basis for the replacement car.