Pseudo-final tax from 2027. What does this mean for your vehicle fleet?

From 1 January 2027, employers will be faced with a far-reaching tax measure: the ‘pseudo-final levy’. This is a new tax on non-electric cars that employees also use privately. Will you soon have to pay thousands of euros extra per company car? Or will politicians water down the scheme? PrismaFleet explains what the pseudo-final levy means for fleet managers and how we can help your organisation prepare for the new rules.

How does the ‘pseudo-final levy’ work?

According to current plans, the pseudo-final levy will come into effect from 2027 and will amount to 12 per cent of the list price of a company car that is also driven privately. Employers will have to pay this additional tax on non-electric company cars that employees are permitted to use privately. This could add up to a significant amount. For a car with a list price of €50,000, the levy amounts to approximately €500 per month in additional costs.

Why the ‘pseudo-final levy’ may still change

The government aims to accelerate the transition to electric driving with this measure. However, criticism of the scheme is growing rapidly. According to BOVAG, the scheme creates major administrative challenges and could even lead to a ‘barrage of fines’ for employers.

This is because the levy also applies to temporary replacement vehicles, for example, if an employee takes their lease car to the garage and is temporarily provided with a petrol-powered car. Even for just one day’s use, the fleet owner may be liable for the levy. No exemption schemes have yet been established for sectors such as car hire, body repair, car dealerships and driving schools, even though these businesses are often not yet able to operate entirely without petrol or diesel cars.

House of Representatives also seeks a solution

A majority of the House of Representatives has now approved a motion to explore solutions to the unintended consequences of the scheme. BOVAG, together with various employers’ organisations, is in discussions with the government to see if the ‘pseudo-final levy’ might still be amended.

For now, it still looks as though companies will have to prepare for stricter rules. Organisations with large or flexible vehicle fleets, in particular, are at risk of higher costs and additional administrative burdens. This is precisely why effective fleet management is more important than ever.

Reduce the administrative burden with MobyHub

Employers will soon need to be able to demonstrate exactly which car was made available to which employee and when.

Smart software helps to keep this administrative burden manageable. PrismaFleet offers MobyHub, our own fleet management platform, for this purpose. Organisations gain real-time insight into vehicle usage, user records and vehicle allocations. This makes it easier to maintain accurate records and identify potential tax risks more quickly.

The coming months will remain exciting, as politicians and industry organisations are still in full discussion regarding the details of the ‘pseudo-final levy’. Until then, employers can start preparing by improving the organisation of their fleet administration.

Curious to find out how your organisation can gain better control over fleet management and administrative processes? PrismaFleet would be happy to provide a no-obligation demo of MobyHub and would be delighted to visit you for an exploratory meeting. Please contact our fleet management experts to discuss the options.