Everything you need to know about charging your electric company car
With the growing popularity of electric vehicles and the shift towards more sustainable mobility solutions, charging electric company cars is a topical and relevant issue. Last week, Finance Minister Vincent Van Peteghem made statements on the tax rules around charging company cars at home, addressing concerns of employees and employers around tax increases. This makes it important to be well informed about the tax implications and benefits involved.
Fuel
Reimbursement for electricity: tax-free
Employers are allowed to reimburse electricity costs without it being considered a taxable benefit. Although the reimbursement should in principle be based on the actual cost of the electricity, there is a temporary arrangement that allows employers to keep a flat rate. This is because it is often difficult to accurately measure exactly how much electricity an employee consumes at home for charging the car.
Conditions and changes
The allowance must be clearly stated in company policy and the electricity costs used must be calculated as accurately as possible. Finance Minister Vincent Van Peteghem (CD&V), who previously said that tax breaks are gradually shifting in favour of zero-emission electric vehicles, said, ‘The panic that some organisations are spreading is unjustified. No one should fear a flat tax increase.’ This comment highlights that the government is aware of the concerns and is working on a solution.
What if you change employers?
If you change jobs, you can take over the home charging station at its residual value if it has not yet been depreciated. If you pay nothing, this is considered a taxable benefit.
What next?
As long as you comply with the conditions and temporary regulations, you can charge your electric company car at home without any tax worries. However, bear in mind that the rules are currently (October ‘24) in place and may be tightened further in the future as better technologies become available.
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