THE NEW WLTP OR THE OLD NEDC AS AN ANTI-POLLUTION STANDARD FOR OUR CARS IN 2021?
In accordance with the new European regulations, as from 1 September 2018, all new cars must pass a more rigorous emissions/consumption/ CO2 test before they can be registered. The new, more dynamic WLTP test (Worldwide Harmonised Light Vehicle Test Procedure) replaces the previous NEDC test (New European Driving Cycle).
Until 31.12.2020, for WLTP vehicles car manufacturers will still have to enter a theoretical NEDC value calculated on the basis of their WLTP value. This theoretical value is known as the ‘NEDC 2.0’ value.
As from 1 January 2021, car manufacturers still may, but are no longer required to, calculate an NEDC 2.0 value for WLTP cars.
In practice, this means that as from 1 January 2021 we will have vehicles that have been:
- type-approved according to the old NEDC test and for which the car manufacturer enters only an NEDC value (‘NEDC 1.0’) on the COC;
- type-approved according to the new WLTP test and for which the car manufacturer enters both an NEDC 2.0 value and a WLTP value on the COC;
- type-approved according to the new WLTP test and for which the car manufacturer enters only a WLTP value on the COC.
Which CO2 value to use for tax calculations?
According to current legislation, the car’s CO2 emissions as available from the DIV (Vehicle Registration Service) must be taken into account when determining the taxable benefit in kind. However, the legal text does not specify whether the NEDC value or the WLTP value has to be used. Therefore, when calculating the taxable benefit in kind, we need to take into account:
- the CO2 value according to NEDC 1.0 if the vehicle has only an NEDC value
- the CO2 value according to WLTP if the vehicle has only a WLTP value
- the CO2 value according to NEDC 2.0 or the CO2 value according to WLTP if the vehicle has both an NEDC 2.0 value and a WLTP value (free choice)
This principle will apply until such time as any new legal provisions enter into force.
And the adjustment of the formula for tax purposes ...
In Belgium, the CO2 value affects the following taxes:
- In Flanders: the registration tax and the annual road tax;
- In Wallonia: the Ecomalus (from 146 g/km CO2);
- At federal level:
- The benefit in kind for company cars with private use by employees and the self-employed;
- The tax deductibility of car expenses for the self-employed and businesses;
- The employer’s solidarity contribution to the social security system.
There are various possibilities:
- Direct application of 100% of the WLTP value
- Adjustment of the calculation formula to (partially) offset the effect
- Introduction of a transitional phase (2021: 80% of WLTP value, 2022: 90% of WLTP value, 2023: 100%)
- Additional parameters for calculating taxes (e.g. VAA based on commuting kilometres)
What about fake hybrids?
For new passenger cars whose measured NEDC CO2 value is less than 50 g CO2 per kilometer, car manufacturers will still have to enter an NEDC 2.0 value on the European Certificate of Conformity (COC) until 31 December 2022.