Private use of company vans
Exemptions from BIK
Your employee will not pay tax on the benefit of a company van where:
- you provide your employee with the van for work purposes and they have to bring it home afterwards
- your employee is not allowed to use the van except travelling to and from work
- your employee spends at least 80% of their working day away from your work premises.
If your employee uses a company van in a van-pool they do not have to pay any tax on that benefit.
A van-pool is where a company van is available and used by more than one employee. A van pool has the following criteria:
- The van must not be regularly used by one employee who prevents others from using it.
- Private use of the van must be minimal.
- The van is not normally kept overnight at or near any of the employees’ homes.
Certain BIK exemptions and discounts are available where the van made available to your employee is an electric van.
Electric vans are vans that get their motive power from electricity only. Hybrid vans do not qualify as electric vans.
The treatment applies to both new and used vans.
You may have made an electric van available to your employee for private use during 2018. Where this occurred, no charge to BIK arises in respect of any use by your employee in 2018.
2019 to 2022 Extension of Exemption
You may choose to make an electric van available to your employee for private use between now and 31 December 2020.
Where this occurs, no charge to BIK arises in respect of any use by your employee where either of the following apply:
- the OMV of the van is €50,000 or less
- you first made this van available to your employee between 10 October 2017 and 9 October 2018.
Where neither of the above apply, only a partial exemption is available. This is granted by reducing the OMV by €50,000 when calculating the cash equivalent for the van.
An employee may not need to pay BIK on a van if it exceeds a certain weight. The van must have a gross van weight (gross laden weight) of more than 3,500kg for this exemption.