Belgium Motor Vehicle Tax Guide

Annual Circulation Tax (Verkeersbelasting / Taxe de Circulation)

• Calculation: The annual circulation tax is a regional tax (collected by the Flemish, Walloon, and Brussels regions) based on the vehicle's fiscal horsepower (pk / CV) — a calculated measure based on engine capacity, power, and fuel type. The rates are progressive: (a) up to 4 CV (small city cars) — approximately €50–€80 per year, (b) 5–7 CV (compact cars) — approximately €100–€200 per year, (c) 8–10 CV (mid-size cars) — approximately €250–€500 per year, (d) 11–15 CV (large cars) — approximately €600–€1,200 per year, (e) 16+ CV (high-performance cars) — approximately €1,500–€2,500+ per year. The rates differ slightly by region — Wallonia and Brussels generally have higher rates than Flanders.
• Surcharges and reductions: There is a provincial surcharge (the "provincieopcentiemen" / "centimes additionnels provinciaux") on the circulation tax — typically 10–30% of the base tax. Electric vehicles (BEVs) are exempt from the circulation tax in all three regions (as of 2026). Hybrids may receive a 50% reduction. Vehicles over 30 years old (oldtimers / voitures anciennes) qualify for a reduced rate (approximately 50% of the standard rate). The circulation tax is paid annually via the regional tax collection agency (Vlaanderen: Vlabel / Wallonie: SPW Fiscalité / Bruxelles: Bruxelles Fiscalité).

Registration Tax (BIV — Belasting op de Inverkeerstelling / Taxe de Mise en Circulation)

• When it applies: The BIV is a one-time tax due when a vehicle is first registered in Belgium (new or imported second-hand). The tax is calculated on: (a) CO2 emissions (g/km) — for petrol, diesel, hybrid, and electric vehicles, (b) engine power — for older vehicles without certified CO2 values, (c) fuel type — diesel vehicles have higher BIV rates than petrol vehicles. The BIV rates (2025–2026) range from: (a) €0 for zero-emission vehicles (BEVs, hydrogen), (b) €60–€500 for low-emission vehicles (CO2 <100 g/km), (c) €500–€2,500 for mid-range vehicles (CO2 100–150 g/km), (d) €2,500–€10,000+ for high-emission vehicles (CO2 >150 g/km). The exact rate is calculated using a regional formula (the "BIV-formule" / "formule TMC") that applies a fixed base amount plus a CO2-based variable component.
• Import and transfer: When importing a used vehicle into Belgium (from another EU country or from outside the EU), the BIV is due on the first Belgian registration. The BIV is not transferable — if the vehicle is sold to a new owner who re-registers it in their name, the new owner must pay the BIV again (unless the vehicle was already registered in Belgium — in that case, no new BIV is due). Exemptions: vehicles registered to disabled persons, diplomatic vehicles, and certain agricultural vehicles.

Company Car Benefit-in-Kind (VAA / VOIPCD)

• VAA calculation: The private use of a company car (the "voordeel alle aard" / "voordeel van persoonlijk gebruik bedrijfswagen" / "avantage de toute nature") is a taxable benefit in kind added to the employee's personal income. The VAA is calculated as: (catalogue value × CO2 percentage × 6/7) + (CO2 surcharge for diesel). The CO2 percentage is based on the car's CO2 emissions: (a) 4% for 0 g/km (electric), (b) 5.5% for 1–50 g/km (plug-in hybrid), (c) 8–18% for higher emissions (the percentage increases with emissions). The reference CO2 value for 2025–2026 is approximately 67 g/km (petrol) and 78 g/km (diesel) — the percentage is adjusted based on the deviation from the reference. For example: a petrol company car with catalogue value €40,000 and CO2 of 120 g/km has a CO2 percentage of 5.5 + (120 – 67) × 0.1 = 10.8%. The annual VAA is €40,000 × 10.8% × 6/7 = €3,703. The VAA is reported on the employee's annual tax return and taxed at the progressive personal income tax rate (25–50%).
• Fuel card benefit: If the employer provides a fuel card (for personal use of the company car), the benefit is already included in the VAA calculation — no additional tax is due for personal fuel consumption. However, if the employer pays for all fuel (business + personal) without restriction, the VAA may be increased by 10–15% (the "brandstofkaart" / "carte carburant" surcharge).

Corporate Tax Deduction for Business Cars

• The CO2-based deductibility (sloopregeling / régime dégressif): From 1 January 2021, the tax deductibility of car expenses (including the operating lease, maintenance, insurance, fuel, and the 17% depreciation on the car) is based on the vehicle's CO2 emissions. The deductibility percentage decreases each year for internal combustion engine vehicles: (a) 2025 — 50% (petrol), 37.5% (diesel), (b) 2026 — 50% (petrol), 37.5% (diesel), (c) 2027 — 50% (petrol), 37.5% (diesel), (d) 2028 — 0% for all ICE vehicles (the "sloop" / "démolition" date). Electric vehicles (BEVs) remain 100% deductible until 2026, then the deduction decreases: 95% in 2027, 90% in 2028, 82.5% in 2029, etc. (the deduction for BEVs will reach 0% by 2031). The CO2-based deduction applies to all car expenses — including the cost of the lease, the fuel, the insurance, and the maintenance.
• Minimum taxable benefit (VAA minimum): For company cars provided to employees, the employer must report the VAA to the FOD Financiën / SPF Finances via the quarterly payroll declaration (DMFA/DIMONA). The VAA is included in the employee's social security contributions (RSZ/ONSS). The employer pays social security on the VAA at the standard rate (approximately 27%). The VAA must be at least the minimum amount set by the FOD Financiën — approximately €1,400 per year for a standard petrol car (2025 minimum).

Fuel Tax and Kilometre Charges

• Excise duties (accijnzen / accises): Belgium imposes high excise duties on motor fuels: (a) petrol (Euro 95/E10) — approximately €0.65 per litre, (b) diesel — approximately €0.50 per litre, (c) LPG — approximately €0.10 per litre. The excise duties are set at the federal level (the EU minimum rates apply). In addition to excise duties, VAT at 21% is applied on the fuel price (including the excise duties). The total tax component on a litre of petrol is approximately 60–70% of the pump price.
• Kilometre charge for trucks (kilometerheffing / taxe kilométrique): Heavy goods vehicles (HGVs over 3.5 tonnes) are subject to a kilometre charge on major roads in all three regions. The rate depends on: (a) the vehicle's weight and axle configuration, (b) the EURO emission class (EURO V, VI, etc.), (c) the type of road (motorway, primary road, secondary road). The rate ranges from approximately €0.08 to €0.30 per kilometre. The charge is collected electronically via the VIA-TASS system (the on-board unit — OBU). The charge applies to approximately 4,500 km of major roads in Flanders, 2,500 km in Wallonia, and 500 km in Brussels. The kilometre charge replaced the Eurovignette for Belgian-registered trucks.

For the employment framework for company cars, see our Employment Benefits Guide →. For the transport and logistics industry implications, see our Transport and Logistics Guide →. For the corporate tax treatment of vehicle expenses, see our Corporate Tax Guide →.