What is the pseudo-final levy and who does it apply to?

The pseudo-final levy is an employer levy from the 2026 Tax Plan, designed to make business fleets go electric faster. If, from 2027, you make a petrol, diesel or hybrid passenger car available that is also used privately, you as the employer pay 12% per year on the list price including VAT and BPM (vehicle registration tax).

Three things to know:

- It is not the bijtelling. The bijtelling (the taxable benefit for private use of a company car) still exists and is paid by your employee. The pseudo-final levy comes on top of that, is fully at your expense and cannot be passed on to your employee.

- Commuting counts as private use. This is different from the bijtelling. An employee who only drives between home and work and pays no bijtelling will still cost you, as the employer, the full levy.

- The levy works per month. Every month in which the car is available for at least one day counts for 1/12 of the annual amount. You pay it through your payroll tax return.

The levy applies to every employer that meets these conditions, from a single car to an entire fleet, including the director-major shareholder (DGA) with a car from their own BV. Self-employed professionals without staff and private individuals are exempt.

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Which cars does the levy apply to?

The levy applies to passenger cars running on petrol, diesel or hybrid power, including plug-in hybrids, that are also used privately. For cars older than 25 years, the market value is used as the basis.

Exempt from the levy:

- Fully electric and hydrogen cars, for more information see: electric short-lease.

- Vans (grey licence plates). If your staff drive a commercial vehicle, it stays outside the levy.

- Cars that are demonstrably used for business purposes only. The burden of proof is on you, and commuting counts as private use, so in practice this is rare.

- Manual-transmission training cars used by driving schools.

- Short-term use: replacement transport during maintenance, repair or damage for up to fourteen consecutive days, and other short-term use of up to seven consecutive days per licence plate per year (ends in 2031).

Pseudo-final levy timeline

Already driving with VWP? You're all set until 2031

Any car made available to your organization before January 1, 2027, falls under the transitional arrangement: you will not pay any levy on it until January 1, 2031. This also applies to the short-lease cars you are currently driving.

The arrangement is tied to the combination of car and employer, not the contract. If your agreed term expires and you continue driving the same car, nothing changes from a tax perspective. At VWP, your short-lease simply continues after the agreed period, cancellable on a weekly basis, without a new contract. You don't need to do anything to keep your levy-free car.

What you should avoid: switching to a different fossil-fuel car after January 1, 2027. That counts as a new provision of a vehicle, and the levy will start immediately, even for the same model. Changing drivers within your organization is allowed, and a replacement car during maintenance (up to fourteen days) will not affect your transitional rights.

If you are unsure which of your cars fall under the transitional arrangement, please contact us.

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Why short-lease is the smartest choice regarding the pseudo-final levy

The levy penalizes two things: deploying a new fossil-fuel car after 2027, and continuing to drive fossil-fuel vehicles after 2030. Everything comes down to timing, and a long-term contract can get in your way. Business short-lease gives you the flexibility that a classic contract lacks:

- You can easily keep your current car levy-free. Continue driving after your term ends, with weekly cancellation, without it counting as a new provision.

- You are never locked in past 2031. A four- or five-year fossil-fuel contract signed now will guarantee you pay the full levy in the final years. With short-lease, you stop whenever you want.

- Try electric with no risk. With electric short-lease, you can drive for a few months and switch models if your first choice isn't a perfect fit. If it works out, you just keep driving.

- Transition in phases. The levy applies per car and per month, so you can convert your fleet at a pace that suits you while keeping the rest levy-free under the transitional arrangement. If you're unsure which option fits best, compare our lease types.

View our electric short-lease offers or request a no-obligation consultation about transitioning your fleet.

Frequently asked questions about the pseudo-final levy

Answered directly for you

Is the pseudo-final levy already final?

The levy itself is final: it is included in the 2026 Tax Plan, which was passed by both Houses at the end of 2025, and will take effect on January 1, 2027. The relaxations (extension of the transitional arrangement to January 1, 2031, and exemptions for replacement transport, short-term use, and manual driving school cars) are included in the 2027 Tax Plan, which was submitted to the House of Representatives on September 15, 2026. Parliament is expected to vote on this at the end of 2026. The scheme may be adjusted during the evaluation in 2030.

Does the levy also apply to the DGA?

Yes. Even a major shareholder-director is an employee of their own private limited company (BV). If the BV provides a fossil-fuel passenger car that is also used for private purposes, the BV must pay the pseudo-final levy.

I have a sole proprietorship. Do I pay the levy?

Not for yourself: as an entrepreneur with a sole proprietorship or partnership, you are not an employee, so you do not pay the pseudo-final levy on your own car. However, if you do have staff with a company car that runs on fossil fuels, the levy does apply to those cars. If you are an entrepreneur looking for flexible driving, take a look at short-lease for freelancers.

I am already driving a VWP short-lease car. Will I pay the levy starting in 2027?

No, not as long as that car remains with your organization. A car made available to your organization before January 1, 2027, falls under the transitional arrangement until January 1, 2031. This also applies if your agreed term ends in the meantime and you simply continue driving. The transitional right only expires if you switch to a different fossil-fuel car or if the car is transferred to a different employer.

My short-lease term is ending soon. Can I continue driving without the levy?

Yes. At VWP, your short-lease simply continues after the agreed period, with a weekly notice period. Because it remains the same car with the same employer, no new provision occurs, and the transitional arrangement remains in effect until January 1, 2031. You do not need to change anything to continue driving without the levy.

What if I want a different model after 2027?

If you switch to another fossil-fuel or hybrid car, it counts as a new provision, and the levy starts immediately, even if it is the same model. If you switch to a fully electric car, you pay nothing. If you want to switch, choose electric, and keep using the fossil-fuel cars you currently have for as long as possible.

What if a car is only in the fleet for part of the year?

The levy is calculated per month. You pay 1/12 of the annual amount for every month in which the car was available for private use for at least one day. A car that enters the fleet on July 1 will therefore incur half a year of levy for that year.

Does the levy also apply to older cars?

Yes, but on a different basis. For passenger cars older than 25 years, the levy is calculated based on the market value instead of the list price.